Overview

* Kimball Electronics ( KE ) fiscal Q1 revenue of $365.6 mln beats analyst expectations

* Adjusted EPS for fiscal Q1 more than doubles year-over-year, beating estimates

* Company repurchased 49,000 shares, indicating confidence in future growth

Outlook

* Kimball Electronics ( KE ) reiterates fiscal 2026 net sales guidance of $1,350 mln to $1,450 mln

* Company expects fiscal 2026 adjusted operating income of 4.0% to 4.25% of net sales

* Kimball Electronics ( KE ) plans fiscal 2026 capital expenditures of $50 mln to $60 mln

Result Drivers

* MEDICAL VERTICAL - Strong year-over-year sales growth in the medical end-market vertical drove revenue

* MARGIN IMPROVEMENT - Operating income margins improved year-over-year, contributing to better financial performance

* DEBT REDUCTION - Debt decreased by $9.5 million, enhancing financial flexibility

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q1 Sales Beat $365.60 $338.43

mln mln (4

Analysts

)

Q1 Beat $0.49 $0.26 (4

Adjusted Analysts

EPS )

Q1 EPS $0.40

Q1 Beat $12.25 $6.01

Adjusted mln mln (3

Net Analysts

Income )

Q1 Net $10.09

Income mln

Q1 Beat $17.53 $12.04

Adjusted mln mln (3

Operatin Analysts

g Income )

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the semiconductors peer group is "buy"

* Wall Street's median 12-month price target for Kimball Electronics Inc ( KE ) is $27.50, about 4.7% below its November 4 closing price of $28.79

* The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)