Kimball Electronics Surges 9.6% After Beating Earnings Expectations

Kimball Electronics reported better-than-expected quarterly earnings of 34 cents per share and sales of $380.472 million, beating analyst estimates. Shares rose 9.6% to $22.98. Other big stocks moving higher on Thursday include Terawulf, Dlocal, Equinox Gold, and Newegg Commerce.

Kimball Electronics (KE) reported better-than-expected quarterly earnings and sales, driving a significant increase in its stock price. The company's quarterly earnings per share (EPS) of 34 cents beat the analyst consensus estimate of 15 cents per share, while quarterly sales of $380.472 million exceeded expectations of $333.186 million [2]. Following the announcement, Kimball Electronics shares jumped 9.6% to $22.98 on Thursday.

The company's performance was highlighted by strong operational efficiency, with net sales reaching $381 million, a decline of 8% year-over-year when excluding divested businesses. Despite this, Kimball Electronics achieved its third-highest annual net sales in its 60-year history at $1.487 billion [3]. The company also reported a record annual cash flow of $183.9 million and reduced debt by 50% during the fiscal year.

Kimball Electronics' stock surged by 10.49% to $22.49 in premarket trading, reflecting strong investor confidence. The company's stock has delivered impressive returns, gaining over 22% in the past six months and trading near its 52-week high [3]. The company's focus on cost optimization and operational efficiency is evident, with selling and administrative expenses reduced by 23% and cash conversion days improved from 100 to 85.

Looking ahead, Kimball Electronics projects net sales between $1.35 billion and $1.45 billion for fiscal 2026, indicating a potential decrease of 2-9% from the previous year. The company expects adjusted operating income to remain steady at 4-4.25% of net sales [3].

The company's strong performance comes amidst a challenging macroeconomic environment, with potential supply chain issues, market saturation, and regulatory changes posing risks. Kimball Electronics is well-positioned to navigate these challenges, as evidenced by its robust financial performance and strategic focus on Medical Contract Manufacturing Organization (CMO) initiatives.

References:
[1] https://www.stocktitan.net/sec-filings/KE/
[2] https://www.benzinga.com/trading-ideas/movers/25/08/47128673/kimball-electronics-posts-better-than-expected-earnings-joins-terawulf-dlocal-equinox-gold-and-other-big-stocks-moving-higher-on-thursday
[3] https://www.investing.com/news/transcripts/earnings-call-transcript-kimball-electronics-q4-2025-beats-earnings-expectations-93CH-4192875