We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Knowles (KN) Beats Earnings and Revenue Estimates in Q1
Read MoreHide Full Article
Knowles Corporation (KN - Free Report) reported healthy first-quarter 2022 results, wherein both the bottom and the top lines beat the Zacks Consensus Estimate.
The company is focused on delivering high-value, differentiated solutions to a diverse set of growing end markets to expand its gross margin.
Net Income
On a GAAP basis, net income in the quarter was $18.1 million or 19 cents per share compared with $12.5 million or 13 cents per share in the prior-year quarter.
Non-GAAP net income was $33.6 million or 35 cents per share compared with $27.8 million or 29 cents per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 3 cents.
Knowles Corporation Price, Consensus and EPS Surprise
Despite macroeconomic headwinds, quarterly revenues inched up 0.2% year over year to $201.4 million. The top line surpassed the consensus estimate of $200 million.
Audio revenues fell 10.7% year over year to $145.7 million due to weak computing and mobile market demand and supply chain headwinds. The segment’s gross profit was $58.4 million compared with $64.8 million in the prior-year quarter.
Precision Devices revenues jumped 47% to $55.7 million, driven by strong organic growth in defense, industrial and medtech markets. Gross profit was $25.3 million compared with $13.7 million in the year-ago quarter.
Other Details
Cost of goods sold decreased to $118.1 million from $123 million year over year. Gross profit improved to $83.3 million from $78 million for a margin of 41.4% and 38.8%, respectively. Total operating expenses were $62 million compared with $59.7 million in the prior-year quarter. Operating income came in at $21.3 million compared with $18.3 million a year ago. The company has announced a $150 million increase in its share repurchase program.
Cash Flow & Liquidity
During the first quarter, Knowles generated $0.8 million of cash from operating activities. As of Mar 31, 2022, the company had $50.7 million in cash and cash equivalents with $70 million of long-term debt.
Q2 Outlook
Knowles has guided for the second quarter. The company anticipates weak Chinese market demand and supply chain challenges to continue through the first half of 2022. It expects non-GAAP revenues in the range of $195-$205 million. Non-GAAP gross profit margin is estimated within 41-42%. Non-GAAP earnings are projected in the band of 30-34 cents per share.
Gogo Inc. (GOGO - Free Report) is a better-ranked stock in the broader Zacks Computer and Technology sector, sporting a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has been revised upward by 25% over the past 60 days.
Gogo delivered a trailing four-quarter earnings surprise of 65%, on average. It has rallied 83.4% in the past year.
Nokia (NOK - Free Report) , carrying a Zacks Rank #2 (Buy), is another solid pick for investors. The consensus estimate for current-year earnings has been revised upward by 5% over the past 60 days.
Nokia pulled off a trailing four-quarter earnings surprise of 33.8%, on average. It has inched up 4.7% in the past year.
Sierra Wireless, Inc. carries a Zacks Rank #2. The consensus mark for current-year earnings has been revised upward by 237.5% over the past 60 days.
Sierra Wireless pulled off a trailing four-quarter earnings surprise of 58%, on average. The stock has moved up 6.3% in the past year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Knowles (KN) Beats Earnings and Revenue Estimates in Q1
Knowles Corporation (KN - Free Report) reported healthy first-quarter 2022 results, wherein both the bottom and the top lines beat the Zacks Consensus Estimate.
The company is focused on delivering high-value, differentiated solutions to a diverse set of growing end markets to expand its gross margin.
Net Income
On a GAAP basis, net income in the quarter was $18.1 million or 19 cents per share compared with $12.5 million or 13 cents per share in the prior-year quarter.
Non-GAAP net income was $33.6 million or 35 cents per share compared with $27.8 million or 29 cents per share in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 3 cents.
Knowles Corporation Price, Consensus and EPS Surprise
Knowles Corporation price-consensus-eps-surprise-chart | Knowles Corporation Quote
Revenues
Despite macroeconomic headwinds, quarterly revenues inched up 0.2% year over year to $201.4 million. The top line surpassed the consensus estimate of $200 million.
Audio revenues fell 10.7% year over year to $145.7 million due to weak computing and mobile market demand and supply chain headwinds. The segment’s gross profit was $58.4 million compared with $64.8 million in the prior-year quarter.
Precision Devices revenues jumped 47% to $55.7 million, driven by strong organic growth in defense, industrial and medtech markets. Gross profit was $25.3 million compared with $13.7 million in the year-ago quarter.
Other Details
Cost of goods sold decreased to $118.1 million from $123 million year over year. Gross profit improved to $83.3 million from $78 million for a margin of 41.4% and 38.8%, respectively. Total operating expenses were $62 million compared with $59.7 million in the prior-year quarter. Operating income came in at $21.3 million compared with $18.3 million a year ago. The company has announced a $150 million increase in its share repurchase program.
Cash Flow & Liquidity
During the first quarter, Knowles generated $0.8 million of cash from operating activities. As of Mar 31, 2022, the company had $50.7 million in cash and cash equivalents with $70 million of long-term debt.
Q2 Outlook
Knowles has guided for the second quarter. The company anticipates weak Chinese market demand and supply chain challenges to continue through the first half of 2022. It expects non-GAAP revenues in the range of $195-$205 million. Non-GAAP gross profit margin is estimated within 41-42%. Non-GAAP earnings are projected in the band of 30-34 cents per share.
Zacks Rank & Stocks to Consider
Knowles currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Gogo Inc. (GOGO - Free Report) is a better-ranked stock in the broader Zacks Computer and Technology sector, sporting a Zacks Rank #1. The Zacks Consensus Estimate for its current-year earnings has been revised upward by 25% over the past 60 days.
Gogo delivered a trailing four-quarter earnings surprise of 65%, on average. It has rallied 83.4% in the past year.
Nokia (NOK - Free Report) , carrying a Zacks Rank #2 (Buy), is another solid pick for investors. The consensus estimate for current-year earnings has been revised upward by 5% over the past 60 days.
Nokia pulled off a trailing four-quarter earnings surprise of 33.8%, on average. It has inched up 4.7% in the past year.
Sierra Wireless, Inc. carries a Zacks Rank #2. The consensus mark for current-year earnings has been revised upward by 237.5% over the past 60 days.
Sierra Wireless pulled off a trailing four-quarter earnings surprise of 58%, on average. The stock has moved up 6.3% in the past year.