Kimball Electronics Faces Revenue Decline and Misses Wall Street Expectations in Q4 2024
Global electronics contract manufacturer Kimball Electronics (NYSE:KE) reported a significant revenue drop of 15.2% year on year, generating $357.4 million in the fourth quarter of 2024. This figure was notably below Wall Street's expectations, as outlined by the source.
Alongside the quarterly result, the company's full-year revenue forecast at $1.42 billion, at the midpoint, was 4.4% beneath analyst forecasts, indicating anticipated headwinds in demand. Despite this, Kimball Electronics exceeded profit predictions, posting a non-GAAP profit of $0.29 per share, which was 28.9% above consensus estimates. According to IndexBox, these financial results reflect a broader trend affecting many players in the electronics manufacturing space, where macroeconomic factors influence demand cycles.
Richard D. Phillips, CEO of Kimball Electronics, remarked on the results: "The outcomes for this quarter aligned with expectations as we persist through sustained periods of declining customer demand, focusing on manageable factors." He emphasized the positive liquidity provided by improved operating cash flow, which allowed strategic investment for future growth despite the industry challenges.
Despite promising pockets of demand in Internet of Things (IoT) connectivity and the 5G telecom upgrade cycle, Kimball Electronics reports an uninspiring long-term sales growth rate of 4.8% CAGR over the last five years. This lag in growth compared to sector standards suggests difficulties in capitalizing on these technological trends.
In terms of profitability, Kimball Electronics has struggled to maintain its operating margin, which saw a dip to 2.3% in Q4 2024, down by 1.8 percentage points from the previous year. Over the last two years, the company's earnings per share also reflected a downward trend, declining to $0.29 this quarter from $0.33 the same quarter last year, despite surpassing market expectations. Looking forward, Wall Street projects EPS to grow by 32.6% over the next year, although the revenue outlook remains dim, with a predicted decline of 5.6%.
As Kimball Electronics enters this challenging period, the electronics contract manufacturer will need to leverage its operational efficiencies and strategically navigate the fluctuating economic cycles that define the broader industrials sector.
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1. INTRODUCTION
Making Data-Driven Decisions to Grow Your Business
- REPORT DESCRIPTION
- RESEARCH METHODOLOGY AND AI PLATFORM
- DATA-DRIVEN DECISIONS FOR YOUR BUSINESS
- GLOSSARY AND SPECIFIC TERMS
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2. EXECUTIVE SUMMARY
A Quick Overview of Market Performance
- KEY FINDINGS
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3. MARKET OVERVIEW
Understanding the Current State of The Market and Its Prospects
- MARKET SIZE
- CONSUMPTION BY COUNTRY
- MARKET FORECAST TO 2030
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4. MOST PROMISING PRODUCT
Finding New Products to Diversify Your Business
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- MOST CONSUMED PRODUCT
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5. MOST PROMISING SUPPLYING COUNTRIES
Choosing the Best Countries to Establish Your Sustainable Supply Chain
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6. MOST PROMISING OVERSEAS MARKETS
Choosing the Best Countries to Boost Your Exports
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7. GLOBAL PRODUCTION
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8. GLOBAL IMPORTS
The Largest Importers on The Market and How They Succeed
- IMPORTS FROM 2012–2024
- IMPORTS BY COUNTRY
- IMPORT PRICES BY COUNTRY
9. GLOBAL EXPORTS
The Largest Exporters on The Market and How They Succeed
- EXPORTS FROM 2012–2024
- EXPORTS BY COUNTRY
- EXPORT PRICES BY COUNTRY
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10. PROFILES OF MAJOR PRODUCERS
The Largest Producers on The Market and Their Profiles
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11. COUNTRY PROFILES
The Largest Markets And Their Profiles
This Chapter is Available Only for the Professional Edition PRO- United States
- China
- Japan
- Germany
- United Kingdom
- France
- Brazil
- Italy
- Russian Federation
- India
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- Republic of Korea
- Spain
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- Indonesia
- Netherlands
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LIST OF TABLES
- Key Findings In 2024
- Market Volume, In Physical Terms, 2012–2024
- Market Value, 2012–2024
- Per Capita Consumption, By Country, 2018–2024
- Production, In Physical Terms, By Country, 2012–2024
- Imports, In Physical Terms, By Country, 2012–2024
- Imports, In Value Terms, By Country, 2012–2024
- Import Prices, By Country Of Destination, 2012–2024
- Exports, In Physical Terms, By Country, 2012–2024
- Exports, In Value Terms, By Country, 2012–2024
- Export Prices, By Country Of Origin, 2012–2024
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LIST OF FIGURES
- Market Volume, In Physical Terms, 2012–2024
- Market Value, 2012–2024
- Consumption, By Country, 2024
- Market Volume Forecast to 2030
- Market Value Forecast to 2030
- Products: Market Size And Growth, By Type
- Products: Average Per Capita Consumption, By Type
- Products: Exports And Growth, By Type
- Products: Export Prices And Growth, By Type
- Production Volume And Growth
- Exports And Growth
- Export Prices And Growth
- Market Size And Growth
- Per Capita Consumption
- Imports And Growth
- Import Prices
- Production, In Physical Terms, 2012–2024
- Production, In Value Terms, 2012–2024
- Production, By Country, 2024
- Production, In Physical Terms, By Country, 2012–2024
- Imports, In Physical Terms, 2012–2024
- Imports, In Value Terms, 2012–2024
- Imports, In Physical Terms, By Country, 2024
- Imports, In Physical Terms, By Country, 2012–2024
- Imports, In Value Terms, By Country, 2012–2024
- Import Prices, By Country, 2012–2024
- Exports, In Physical Terms, 2012–2024
- Exports, In Value Terms, 2012–2024
- Exports, In Physical Terms, By Country, 2024
- Exports, In Physical Terms, By Country, 2012–2024
- Exports, In Value Terms, By Country, 2012–2024
- Export Prices, 2012–2024