NYSE$KN

Knowles Corporation · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Knowles' first quarter 2021 financial results were reported, with revenue and gross margin above the midpoint of guidance.

Knowles Corporation reported strong Q1 2021 results, with revenue up 23% year-over-year. Audio revenues were driven by strong MEMS microphone demand and improving trends in the Hearing Health business. The company expects Q2 sales to increase 28% from the year-ago period.

  • First quarter revenue and gross margin were above the midpoint of guidance.
  • Audio revenues were driven by strong MEMS microphone demand across multiple end markets.
  • Improving trends were seen in the Hearing Health business.
  • Record Q1 bookings gives increased confidence that the medtech and defense end markets will recover through the rest of the year.

Headline financials

Total Revenue

$201M

Previous: $163M+23.2%
EPS (adj)

$0.29

Previous: $0.03+866.7%
Capital Expenditures

-$5.2M

Previous: -$7.8M+33.3%
Free Cash Flow

$7.3M

Previous: -$16.9M+143.2%
Net Income

$12.5M

Previous: -$9.1M+237.4%
Operating Income

$18.3M

Previous: -$9.6M+290.6%
Gross Profit

$78M

Previous: $56.2M+38.8%
Cash & Equivalents

$182M

Previous: $148M+22.9%
Total Assets

$1.68B

Previous: $1.7B-1.3%
Stock-Based Comp

$11.1M

Previous: $3.5M+217.1%

Revenue & EPS history

Knowles · Revenue · Quarterly

$201M

Q1 2021+23.2%vs Q1 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

For the second quarter of 2021, Knowles expects revenue between $185 million and $205 million, with EPS between $0.14 and $0.20 and Non-GAAP EPS between $0.23 and $0.29.

Tailwinds

  • Expect sales to increase 28% from the year ago period on continued strength in Audio.
  • Record Q1 bookings gives increased confidence that the medtech and defense end markets will recover through the rest of the year.
  • The midpoint of revenue guidance is $195 million.
  • Gross Profit Margin is expected to be between 38.5% to 40.5%
  • EPS is expected to be between $0.14 to $0.20

Headwinds

  • Q2 2021 GAAP results are expected to include approximately $0.06 per share in stock-based compensation.
  • Q2 2021 GAAP results are expected to include approximately $0.03 per share in amortization of intangibles and debt discount.
  • Revenue is expected to be between $185 million and $205 million.
  • EPS is expected to be between $0.14 and $0.20
  • Non-GAAP EPS is expected to be between $0.23 and $0.29

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

-0.5%

Avg return

Earnings day

+0.5%

Avg return

5 days after

+2.0%

Avg return

30 days after

54%

29 / 54 earnings

Positive

+22.4%

Q3 2023

Best reaction

-19.3%

Q3 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.4%-2.9%+17.2%
Q4 2025+9.1%+9.1%+0.4%
Q3 2025+0.3%-1.7%-11.1%
Q2 2025-1.7%-1.5%+7.3%
Q1 2025+2.8%+0.6%+3.6%
Q4 2024+0.2%-1.0%-12.2%
Q3 2024+3.5%+5.9%+10.9%
Q2 2024-0.9%-8.0%+2.8%
Q1 2024+2.4%+5.6%+10.7%
Q4 2023-3.7%-2.2%-0.1%
Q3 2023+22.4%+19.3%+23.1%
Q2 2023-9.1%-9.8%-14.4%
Q1 2023+7.9%+4.8%+13.6%
Q4 2022-14.5%-6.2%-13.5%
Q3 2022+5.3%+9.7%+17.4%
Q2 2022-15.2%-15.3%-26.3%
Q1 2022+1.5%+3.8%+5.6%
Q4 2021+4.5%+1.7%-0.1%
Q3 2021+5.1%+4.7%+9.1%
Q2 2021+4.4%+5.2%+6.0%
Q1 2021-0.2%+0.6%-4.2%
Q4 2020+1.7%+2.1%+1.5%
Q3 2020-5.9%+4.1%+13.5%
Q2 2020+10.0%+9.7%+6.1%
Q1 2020-3.3%-5.0%+5.9%
Q4 2019-18.6%-19.9%-18.9%
Q3 2019-2.1%-1.9%-0.3%
Q2 2019+10.8%+12.8%+12.8%
Q1 2019-1.2%+0.2%-12.7%
Q4 2018+1.5%-0.3%+0.2%
Q3 2018+9.0%+4.1%+3.5%
Q2 2018+13.7%+12.9%+12.6%
Q1 2018+9.0%+11.6%+27.7%
Q4 2017-4.5%-3.4%+2.3%
Q3 2017-0.9%+2.9%+4.7%
Q2 2017-6.5%-8.4%-10.9%
Q1 2017-8.0%-9.0%-13.3%
Q4 2016+3.0%+2.7%+0.2%
Q3 2016+3.6%-1.8%+12.1%
Q2 2016-10.4%-14.6%-12.1%
Q1 2016+4.7%
Q4 2015-17.9%
Q3 2015-19.3%
Q2 2015+8.3%
Q1 2015-5.6%
Q4 2014-18.3%
Q3 2013-4.5%
Q3 2014+1.5%
Q2 2013+4.7%
Q2 2014-3.2%
Q4 2013+1.8%
Q4 2012+1.8%
Q1 2013+1.8%
Q1 2014-5.7%
Q3 2012

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro