Knowles (NYSE:KN) Announces Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Knowles (NYSE:KN) posted its quarterly earnings data on Thursday. The communications equipment provider reported $0.27 earnings per share for the quarter, topping the consensus estimate of $0.24 by $0.03, Briefing.com reports. Knowles had a net margin of 7.45% and a return on equity of 9.76%. The firm had revenue of $153.10 million during the quarter, compared to analysts’ expectations of $147.40 million. During the same quarter in the previous year, the company posted $0.18 EPS. Knowles’s revenue was up 15.8% on a year-over-year basis. Knowles updated its Q2 2026 guidance to 0.280-0.320 EPS.

Here are the key takeaways from Knowles’ conference call:

• Q1 results beat guidance — revenue of $153 million (+16% YoY) and EPS of $0.27 (+50% YoY), with cash used in operations of $1 million, all within company guidance.
• Precision Devices momentum — PD revenue was $85 million (+17% YoY), book-to-bill was 1.19 (sixth consecutive quarter >1), and management expects PD revenue growth above the high end of its 6%–8% organic target with margin expansion into H2 2026.
• Specialty-film energy order ramp — the $75M+ energy order is on track to be fully ramped by end of Q2, will contribute meaningful near-term revenue (management cited >$25M) and is expected to drive ~200–250 bps of PD gross-margin improvement in H2 despite near-term higher factory costs.
• MedTech & Specialty Audio grew 14% in Q1 driven by hearing-health product ramps, but the company expects full-year MSA growth to remain in the historical 2%–4% range with MSA gross margins roughly flat at ~51%.
• Conservative guidance and solid liquidity — Q2 guidance is $152M–$162M revenue and EPS $0.28–$0.32, projected Q2 operating cash of $20M–$30M, company exited Q1 with $41M cash, net leverage of 0.6x, >$310M of liquidity, and repurchased $7.5M of stock in Q1.

Knowles Stock Performance

NYSE:KN traded down $1.57 during mid-day trading on Friday, hitting $29.70. The stock had a trading volume of 140,553 shares, compared to its average volume of 667,168. Knowles has a twelve month low of $15.31 and a twelve month high of $31.95. The stock has a market cap of $2.54 billion, a price-to-earnings ratio of 58.10 and a beta of 1.49. The company’s 50 day simple moving average is $26.91 and its 200 day simple moving average is $24.52. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.58 and a current ratio of 2.75.

Insiders Place Their Bets

In related news, SVP Robert J. Perna sold 9,221 shares of the firm’s stock in a transaction dated Thursday, February 26th. The shares were sold at an average price of $27.88, for a total value of $257,081.48. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, COO Daniel J. Giesecke sold 15,885 shares of the firm’s stock in a transaction dated Monday, February 9th. The shares were sold at an average price of $27.22, for a total transaction of $432,389.70. Following the completion of the sale, the chief operating officer owned 164,963 shares of the company’s stock, valued at $4,490,292.86. This trade represents a 8.78% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 198,742 shares of company stock worth $5,312,280 in the last three months. Insiders own 2.24% of the company’s stock.

Institutional Investors Weigh In On Knowles

Hedge funds have recently bought and sold shares of the company. Financiere des Professionnels Fonds d investissement inc. raised its holdings in Knowles by 30.1% in the 4th quarter. Financiere des Professionnels Fonds d investissement inc. now owns 11,273 shares of the communications equipment provider’s stock valued at $242,000 after acquiring an additional 2,610 shares during the period. BNP Paribas Financial Markets raised its holdings in Knowles by 117.5% in the 2nd quarter. BNP Paribas Financial Markets now owns 13,426 shares of the communications equipment provider’s stock valued at $237,000 after acquiring an additional 7,254 shares during the period. Russell Investments Group Ltd. raised its holdings in Knowles by 27.6% in the 4th quarter. Russell Investments Group Ltd. now owns 10,978 shares of the communications equipment provider’s stock valued at $236,000 after acquiring an additional 2,372 shares during the period. Mangrove Partners IM LLC bought a new position in Knowles in the 4th quarter valued at about $218,000. Finally, Mercer Global Advisors Inc. ADV bought a new position in Knowles in the 3rd quarter valued at about $214,000. 96.35% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Several brokerages have commented on KN. Craig Hallum reiterated a “buy” rating and set a $30.00 target price on shares of Knowles in a research report on Friday, February 6th. Weiss Ratings reissued a “hold (c)” rating on shares of Knowles in a report on Monday, December 29th. Robert W. Baird upped their target price on shares of Knowles from $30.00 to $39.00 and gave the stock an “outperform” rating in a research note on Friday. Finally, Zacks Research raised shares of Knowles from a “strong sell” rating to a “hold” rating in a research note on Friday, April 10th. Two equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $30.67.

Knowles News Roundup

Here are the key news stories impacting Knowles this week:

• Positive Sentiment: Q1 beat on both revenue and non-GAAP EPS: revenue $153.1M (+15.8% y/y) and EPS $0.27, above street expectations; management said results were at or above the high-end of guided ranges. Knowles Reports Q1 2026 Financial Results and Provides Outlook for Q2 2026
• Positive Sentiment: Analyst upgrade: Robert W. Baird raised its price target to $39 and put an “outperform” on the stock, signaling stronger sell‑side conviction and giving material upside versus the current share level. Baird raises KN price target
• Neutral Sentiment: Q2 guidance set to EPS $0.280–$0.320 and revenue $152M–$162M (roughly in line/just above consensus); guidance shows management expects continued revenue growth but gives a narrow EPS range to monitor. Knowles Q1 earnings & guidance (MarketBeat)
• Neutral Sentiment: Earnings call/transcripts are live — useful for details on end-market demand, product mix (RF, advanced microphones, capacitors) and margin drivers if you want to re-assess forward estimates. Knowles Q1 2026 Earnings Call Transcript
• Negative Sentiment: Mixed financial signals flagged by some outlets: certain reports highlight weaker GAAP net income, diluted EPS and negative operating cash flow trends year‑over‑year plus substantial insider selling over recent months — these are risk factors for valuation and near‑term sentiment. QuiverQuant: mixed metrics & insider selling

Knowles Company Profile

Knowles Corporation (NYSE: KN) is a leading developer and manufacturer of advanced micro-acoustic, audio processing and precision device solutions. The company’s product portfolio includes microelectromechanical systems (MEMS) microphones, balanced armature receivers, acoustic filters, and custom audio processing integrated circuits. These solutions are designed to enable clear speech, enhanced voice capture and intelligent audio performance in a variety of end markets.

Founded in 1946, Knowles has evolved from its roots in vacuum tube components to become a pure-play audio technology provider following its spin-off from Dover Corporation in 2014.