Adjusted Operating Income Estimated at 4.2%-4.5% of Net Sales
Consensus $1.4B. Adjusted operating income is estimated to be 4.2% - 4.5% of net sales versus the prior estimate of 4.0% - 4.25% The guidance for capital expenditures did not change with a range of $50 - $60 million.
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Kimball Electronics Q2 2026 Earnings Highlights
- Medical Segment Growth: Kimball Electronics reported $96 million in sales for its Medical segment in Q2, reflecting a 15% year-over-year increase, which underscores the company's robust growth potential and solidifies its position as a Medical CMO.
- Margin Improvement: The gross margin for Q2 improved to 8.2%, a 160 basis point increase from the previous year, primarily driven by a favorable product mix and global restructuring efforts, which are expected to enhance the company's profitability.
- Raised Full-Year Guidance: The company raised its fiscal 2026 net sales guidance to a range of $1.4 billion to $1.46 billion, reflecting strong performance in the Medical vertical and growth potential in European automotive programs, indicating management's confidence in future performance.
- New Facility Opening Impact: The opening of the new medical manufacturing facility in Indianapolis is expected to pressure margins in the short term, although it presents significant growth opportunities in the long run, demonstrating the company's strategic decision to expand manufacturing capacity.
Kimball Electronics Q2 Earnings Beat Expectations
- Earnings Beat: Kimball Electronics reported a Q2 non-GAAP EPS of $0.28, surpassing the expected $0.26, indicating the company's stable profitability and growth potential amidst market fluctuations.
- Revenue Performance: The company generated $341.3 million in revenue for Q2, reflecting a 4.5% year-over-year decline; however, it exceeded analyst expectations of $341.1 million, suggesting resilient market demand.
- Market Reaction: Despite the year-over-year revenue drop, the earnings beat may bolster investor confidence, potentially leading to a positive impact on the stock price and reflecting market optimism regarding the company's future prospects.
- Future Outlook: With ongoing operational optimizations and cost controls, Kimball Electronics is positioned for stronger performance in upcoming quarters, particularly as market demand begins to recover.
Kimball Electronics Set to Announce Q2 Earnings
- Earnings Announcement Schedule: Kimball Electronics (KE) is set to release its Q2 FY 2026 earnings on February 4th after market close, with consensus EPS estimate at $0.26, reflecting a 10.3% year-over-year decline, and revenue estimate at $339.34 million, down 5.1% year-over-year.
- Performance Expectation Analysis: Over the past two years, KE has beaten EPS estimates 50% of the time and revenue estimates 38% of the time, indicating a degree of volatility in financial performance that may affect investor confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen one upward revision and three downward revisions, while revenue estimates experienced two upward and two downward revisions, reflecting market divergence and uncertainty regarding the company's future performance.
- Sales Guidance Reaffirmation: Kimball Electronics reaffirms its sales guidance for FY 2026 at $1.35 billion to $1.45 billion, indicating confidence in future growth amid medical expansion and ongoing restructuring efforts.
Kimball Electronics Rebrands as Kimball Solutions Celebrating 65 Years of Innovation
- New Brand Launch: Kimball Electronics announced its intention to rebrand as Kimball Solutions starting July 2026, reflecting its expanded capabilities in the Electronics Manufacturing Services sector, which will enhance customer service flexibility and responsiveness.
- New Facility Opening: On February 6, 2026, Kimball will hold a ribbon-cutting ceremony for its new medical manufacturing facility in Indianapolis, marking the official launch of its innovation hub in the medical and life sciences sectors, expected to boost the company's competitiveness in this field.
- Investment Commitment: The construction of the new facility represents Kimball's commitment to growth, anticipated to create more opportunities for customers and employees while enhancing community economic vitality, further solidifying its position in the global market.
- Core Values Adherence: Despite the name change, Kimball will maintain its core values of integrity, quality, and continuous improvement, ensuring that it continues to deliver high-quality solutions to customers in its future endeavors.
BOX Shares Drop 14% Over Six Months: What’s Next for the Stock?
Box's Financial Performance: Box shares have declined 13.8% over the past six months, underperforming the industry and sector averages, primarily due to a tough macroeconomic environment and rising operational costs. The company reported flat gross margins and increased operating expenses, leading to a slight contraction in operating margins.
Future Expectations: For fiscal 2026, Box anticipates a gross margin of 81% and an operating margin of 28%. The company expects revenues of $1.175 billion, reflecting an 8% year-over-year growth, and non-GAAP earnings of $1.28 per share, indicating a decrease from the previous fiscal year.
AI and Product Innovations: Box is focusing on enhancing its AI capabilities with new products like Box Extract and Box Automate, which aim to improve data extraction and workflow automation. Partnerships with major tech companies are expected to bolster its AI ecosystem and drive revenue growth.
Customer Growth and Retention: Box has over 2,000 customers paying at least $100K annually, with a net retention rate of 104%. The company is investing in go-to-market initiatives, leading to a 12% year-over-year growth in billings for the third quarter of fiscal 2026.
Top Value Stocks to Consider Purchasing on December 18
Kimball Electronics: This electronics manufacturing company has a Zacks Rank #1 and a P/E ratio of 21.53, with a recent earnings estimate increase of 8.8% over the last 60 days, earning a Value Score of A.
Collegium Pharmaceutical: A specialty pharmaceutical company also holding a Zacks Rank #1, it has a P/E ratio of 6.45 and a 6.6% increase in earnings estimates over the past 60 days, achieving a Value Score of A.
James River Group Holdings: This specialty insurance company carries a Zacks Rank #1, with a P/E ratio of 6.30 and a 10.5% increase in earnings estimates in the last 60 days, earning a Value Score of B.
Investment Insights: Zacks Investment Research is set to release its top 10 stock picks for 2026 on January 5, following a historical performance that significantly outperformed the S&P 500.
Kimball Electronics Q2 2026 Earnings Highlights
- Medical Segment Growth: Kimball Electronics reported $96 million in sales for its Medical segment in Q2, reflecting a 15% year-over-year increase, which underscores the company's robust growth potential and solidifies its position as a Medical CMO.
- Margin Improvement: The gross margin for Q2 improved to 8.2%, a 160 basis point increase from the previous year, primarily driven by a favorable product mix and global restructuring efforts, which are expected to enhance the company's profitability.
- Raised Full-Year Guidance: The company raised its fiscal 2026 net sales guidance to a range of $1.4 billion to $1.46 billion, reflecting strong performance in the Medical vertical and growth potential in European automotive programs, indicating management's confidence in future performance.
- New Facility Opening Impact: The opening of the new medical manufacturing facility in Indianapolis is expected to pressure margins in the short term, although it presents significant growth opportunities in the long run, demonstrating the company's strategic decision to expand manufacturing capacity.
Kimball Electronics Q2 Earnings Beat Expectations
- Earnings Beat: Kimball Electronics reported a Q2 non-GAAP EPS of $0.28, surpassing the expected $0.26, indicating the company's stable profitability and growth potential amidst market fluctuations.
- Revenue Performance: The company generated $341.3 million in revenue for Q2, reflecting a 4.5% year-over-year decline; however, it exceeded analyst expectations of $341.1 million, suggesting resilient market demand.
- Market Reaction: Despite the year-over-year revenue drop, the earnings beat may bolster investor confidence, potentially leading to a positive impact on the stock price and reflecting market optimism regarding the company's future prospects.
- Future Outlook: With ongoing operational optimizations and cost controls, Kimball Electronics is positioned for stronger performance in upcoming quarters, particularly as market demand begins to recover.
Kimball Electronics Set to Announce Q2 Earnings
- Earnings Announcement Schedule: Kimball Electronics (KE) is set to release its Q2 FY 2026 earnings on February 4th after market close, with consensus EPS estimate at $0.26, reflecting a 10.3% year-over-year decline, and revenue estimate at $339.34 million, down 5.1% year-over-year.
- Performance Expectation Analysis: Over the past two years, KE has beaten EPS estimates 50% of the time and revenue estimates 38% of the time, indicating a degree of volatility in financial performance that may affect investor confidence.
- Estimate Revision Dynamics: In the last three months, EPS estimates have seen one upward revision and three downward revisions, while revenue estimates experienced two upward and two downward revisions, reflecting market divergence and uncertainty regarding the company's future performance.
- Sales Guidance Reaffirmation: Kimball Electronics reaffirms its sales guidance for FY 2026 at $1.35 billion to $1.45 billion, indicating confidence in future growth amid medical expansion and ongoing restructuring efforts.
Kimball Electronics Rebrands as Kimball Solutions Celebrating 65 Years of Innovation
- New Brand Launch: Kimball Electronics announced its intention to rebrand as Kimball Solutions starting July 2026, reflecting its expanded capabilities in the Electronics Manufacturing Services sector, which will enhance customer service flexibility and responsiveness.
- New Facility Opening: On February 6, 2026, Kimball will hold a ribbon-cutting ceremony for its new medical manufacturing facility in Indianapolis, marking the official launch of its innovation hub in the medical and life sciences sectors, expected to boost the company's competitiveness in this field.
- Investment Commitment: The construction of the new facility represents Kimball's commitment to growth, anticipated to create more opportunities for customers and employees while enhancing community economic vitality, further solidifying its position in the global market.
- Core Values Adherence: Despite the name change, Kimball will maintain its core values of integrity, quality, and continuous improvement, ensuring that it continues to deliver high-quality solutions to customers in its future endeavors.
BOX Shares Drop 14% Over Six Months: What’s Next for the Stock?
Box's Financial Performance: Box shares have declined 13.8% over the past six months, underperforming the industry and sector averages, primarily due to a tough macroeconomic environment and rising operational costs. The company reported flat gross margins and increased operating expenses, leading to a slight contraction in operating margins.
Future Expectations: For fiscal 2026, Box anticipates a gross margin of 81% and an operating margin of 28%. The company expects revenues of $1.175 billion, reflecting an 8% year-over-year growth, and non-GAAP earnings of $1.28 per share, indicating a decrease from the previous fiscal year.
AI and Product Innovations: Box is focusing on enhancing its AI capabilities with new products like Box Extract and Box Automate, which aim to improve data extraction and workflow automation. Partnerships with major tech companies are expected to bolster its AI ecosystem and drive revenue growth.
Customer Growth and Retention: Box has over 2,000 customers paying at least $100K annually, with a net retention rate of 104%. The company is investing in go-to-market initiatives, leading to a 12% year-over-year growth in billings for the third quarter of fiscal 2026.
Top Value Stocks to Consider Purchasing on December 18
Kimball Electronics: This electronics manufacturing company has a Zacks Rank #1 and a P/E ratio of 21.53, with a recent earnings estimate increase of 8.8% over the last 60 days, earning a Value Score of A.
Collegium Pharmaceutical: A specialty pharmaceutical company also holding a Zacks Rank #1, it has a P/E ratio of 6.45 and a 6.6% increase in earnings estimates over the past 60 days, achieving a Value Score of A.
James River Group Holdings: This specialty insurance company carries a Zacks Rank #1, with a P/E ratio of 6.30 and a 10.5% increase in earnings estimates in the last 60 days, earning a Value Score of B.
Investment Insights: Zacks Investment Research is set to release its top 10 stock picks for 2026 on January 5, following a historical performance that significantly outperformed the S&P 500.
