Kimball Electronics (NASDAQ:KE) Stock Falls 17.8% After Earnings Miss

Key Points

• Kimball Electronics shares fell 17.8% after quarterly EPS of $0.25 came in $0.15 below analysts’ consensus estimate of $0.40.
• Quarterly revenue was $390.8 million, above the $387.2 million analyst estimate; net margin was 1.95% and return on equity was 4.41%.
• Analysts have a consensus Hold rating and an average price target of $32.00; one analyst rates the stock Buy and three rate it Hold.

Kimball Electronics, Inc. (NASDAQ:KE - Get Free Report)'s stock price traded down 17.8% on Thursday after the company announced weaker than expected quarterly earnings. The stock traded as low as $21.44 and last traded at $21.2650. 22,148 shares were traded during trading, a decline of 88% from the average daily volume of 179,379 shares. The stock had previously closed at $25.86.

The electronics maker reported $0.25 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.40 by ($0.15). The firm had revenue of $390.80 million for the quarter, compared to analyst estimates of $387.20 million. Kimball Electronics had a net margin of 1.95% and a return on equity of 4.41%.

Analyst Ratings Changes

A number of equities research analysts recently weighed in on the stock. Weiss Ratings reissued a "hold (c)" rating on shares of Kimball Electronics in a research note on Monday. Cantor Fitzgerald dropped coverage on shares of Kimball Electronics in a research note on Monday, October 12th. They issued an "overweight" rating on the stock. Finally, Zacks Research lowered shares of Kimball Electronics from a "strong-buy" rating to a "hold" rating in a report on Monday, October 19th. One investment analyst has rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $32.00.

Hedge Funds Weigh In On Kimball Electronics

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. GAMMA Investing LLC grew its stake in Kimball Electronics by 36.0% in the third quarter. GAMMA Investing LLC now owns 1,707 shares of the electronics maker's stock valued at $47,000 after acquiring an additional 452 shares during the period. IFP Advisors Inc increased its holdings in shares of Kimball Electronics by 7.6% in the second quarter. IFP Advisors Inc now owns 8,422 shares of the electronics maker's stock worth $216,000 after acquiring an additional 592 shares in the last quarter. Quantinno Capital Management LP increased its holdings in shares of Kimball Electronics by 2.4% in the first quarter. Quantinno Capital Management LP now owns 31,578 shares of the electronics maker's stock worth $748,000 after acquiring an additional 734 shares in the last quarter. Janney Montgomery Scott LLC raised its position in shares of Kimball Electronics by 6.8% during the first quarter. Janney Montgomery Scott LLC now owns 13,246 shares of the electronics maker's stock worth $314,000 after purchasing an additional 839 shares during the period. Finally, Signaturefd LLC raised its position in shares of Kimball Electronics by 70.4% during the third quarter. Signaturefd LLC now owns 2,082 shares of the electronics maker's stock worth $57,000 after purchasing an additional 860 shares during the period. Institutional investors own 75.99% of the company's stock.

Kimball Electronics Stock Performance

The company has a debt-to-equity ratio of 0.18, a current ratio of 2.09 and a quick ratio of 1.27. The company has a market cap of $513.27 million, a price-to-earnings ratio of 18.92 and a beta of 1.23. The stock has a 50-day moving average price of $26.17 and a 200 day moving average price of $25.68.

About Kimball Electronics

Kimball Electronics, Inc is a contract manufacturing and engineering services company that helps original equipment manufacturers design, develop and produce electronic and electrical products. The company provides services spanning product design and development, prototyping, testing, manufacturing, supply chain management and aftermarket support.

Kimball Electronics serves customers in the automotive, medical and industrial markets. Its manufacturing capabilities support products and systems such as automotive electronics, medical devices and equipment, industrial controls, power-management products and other complex electronic assemblies.

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