Knowles (NYSE:KN) Issues Earnings Results

Knowles (NYSE:KN) issued its quarterly earnings data on Thursday. The communications equipment provider reported $0.38 earnings per share for the quarter, beating analysts’ consensus estimates of $0.36 by $0.02, FiscalAI reports. The company had revenue of $184.00 million during the quarter, compared to analysts’ expectations of $172.10 million. Knowles had a return on equity of 11.45% and a net margin of 10.63%.

Here are the key takeaways from Knowles’ conference call:

• Q3 results exceeded guidance, with revenue up 20% year over year to $184 million, EPS of $0.38, and operating cash flow of $45 million. Management now expects 2026 revenue growth of 16% and adjusted EBITDA growth of 24%.
• Precision Devices revenue rose 33% to $117 million, supported by broad demand across medical, defense, industrial, and electrification markets. The segment posted a 1.5 book-to-bill ratio, nearly $180 million of Q3 orders, and a robust backlog.
• Knowles plans to add capacity across most Precision Devices product lines, with initial capacity expected online in late Q1 and full availability in the second half of 2027. The company also sees a path to expanding adjusted EBITDA margins from above 25% in 2026 to approximately 30% within two to three years.
• Management expects several newer growth platforms—including Micro Solutions Group, pulse-power capacitors, attenuators, inductors, and follow-on energy applications—to expand its addressable market beyond the core business. Micro Solutions revenue is projected to exceed $5 million in 2027 and $10 million in 2028.
• Capacity constraints are expected to limit sequential growth in Precision Devices during early 2027, while the end of a low-margin stamping program creates a 2%–3% headwind for MSA revenue, particularly in the first half. Management expects total revenue to be only slightly down sequentially in the March quarter despite strong year-over-year growth.

Knowles Stock Performance

KN traded down $1.59 on Thursday, hitting $33.33. 1,182,155 shares of the company traded hands, compared to its average volume of 835,996. Knowles has a 12-month low of $20.57 and a 12-month high of $42.93. The company has a 50 day moving average of $35.95 and a 200-day moving average of $35.84. The company has a quick ratio of 1.75, a current ratio of 3.20 and a debt-to-equity ratio of 0.16. The stock has a market capitalization of $2.85 billion, a PE ratio of 43.29 and a beta of 1.59.

Insider Buying and Selling

In other news, SVP Raymond D. Cabrera sold 6,178 shares of the company’s stock in a transaction that occurred on Monday, July 27th. The stock was sold at an average price of $36.28, for a total transaction of $224,137.84. Following the completion of the sale, the senior vice president owned 127,945 shares in the company, valued at $4,641,844.60. This represents a 4.61% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Cheryl L. Shavers sold 6,618 shares of the company’s stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $39.27, for a total value of $259,888.86. Following the sale, the director owned 35,723 shares of the company’s stock, valued at $1,402,842.21. This trade represents a 15.63% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.24% of the stock is currently owned by company insiders.

Wall Street Analyst Weigh In

A number of brokerages have recently issued reports on KN. Robert W. Baird set a $44.00 target price on shares of Knowles in a research report on Friday, July 24th. Wall Street Zen downgraded shares of Knowles from a “strong-buy” rating to a “buy” rating in a research report on Saturday, August 1st. Zacks Research cut shares of Knowles from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, September 22nd. Weiss Ratings upgraded shares of Knowles from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, October 8th. Finally, Susquehanna lowered their price objective on shares of Knowles from $40.00 to $35.00 and set a “neutral” rating on the stock in a research report on Wednesday. Three analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $39.00.

Knowles Company Profile

Knowles Corporation (NYSE: KN) is a global manufacturer of advanced electronic components and solutions for audio, communications, medical, industrial and other specialized applications. The company develops products that support sound capture, audio processing, signal management and high-performance connectivity in a range of electronic devices and systems.

Its portfolio includes microelectromechanical systems (MEMS) microphones, audio processors, speakers, receivers, balanced armature drivers and other acoustic components.