Knowles Q2 revenue, adjusted EPS beats estimates

Overview

• Knowles Q2 revenue from continuing operations rises 8% yr/yr to $145.9 mln, beating estimates, per LSEG data

• Adjusted EPS for Q2 at $0.24, surpassing analyst expectations

• Company repurchased $30 mln in shares during Q2

Outlook

• Knowles sees Q3 2025 revenue from continuing operations between $144 mln and $154 mln

• Company expects Q3 GAAP EPS of $0.18 to $0.22

• Knowles projects Q3 non-GAAP EPS of $0.29 to $0.33

• Company anticipates Q3 net cash provided by operating activities between $20 mln to $30 mln

Result Drivers

• PRECISION DEVICES - Increased order activity and backlog in Precision Devices segment across various end markets, per CEO Jeffrey Niew

• MEDTECH AND AUDIO - MedTech and Specialty Audio businesses performed at expectations, according to CEO

• CASH FLOW - "Strong" cash flow enabled $30 mln share repurchase in Q2

Key Details

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 electronic equipment & parts peer group is "buy"

• Wall Street's median 12-month price target for Knowles Corp is $21.00, about 9.5% above its July 23 closing price of $19.00

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release: ID:nBwKmBMka