Knowles (NYSE:KN) Posts Earnings Results, Beats Expectations By $0.02 EPS

Knowles (NYSE:KN) posted its quarterly earnings results 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 for the quarter, compared to the consensus estimate of $172.10 million. Knowles had a net margin of 10.63% and a return on equity of 11.45%.

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 Trading Down 4.5%

NYSE KN traded down $1.59 on Thursday, hitting $33.33. The company’s stock had a trading volume of 1,182,155 shares, compared to its average volume of 835,996. The company has a quick ratio of 1.75, a current ratio of 3.20 and a debt-to-equity ratio of 0.16. Knowles has a 1-year low of $20.57 and a 1-year high of $42.93. The company’s 50-day moving average is $35.95 and its 200 day moving average is $35.84. The firm has a market cap of $2.85 billion, a PE ratio of 43.29 and a beta of 1.59.

Analyst Upgrades and Downgrades

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

Insiders Place Their Bets

In related news, Director Cheryl L. Shavers sold 6,618 shares of the stock in a transaction 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 completion of the sale, the director directly owned 35,723 shares in the company, valued at $1,402,842.21. This represents a 15.63% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Raymond D. Cabrera sold 6,178 shares of the firm’s stock in a transaction on Monday, July 27th. The stock was sold at an average price of $36.28, for a total value of $224,137.84. Following the transaction, the senior vice president directly owned 127,945 shares of the company’s stock, valued at approximately $4,641,844.60. This represents a 4.61% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 2.24% of the stock is currently owned by insiders.

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.