NYSE$KN

Knowles Corporation · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Knowles' financial performance exceeded expectations, driven by strong growth in Audio and Precision Devices segments, and delivered cash from operations.

Knowles Corporation reported Q3 2021 financial results with non-GAAP gross margins at the high end of guidance and non-GAAP EPS above the range. Revenue increased, particularly in the Audio segment due to Hearing Health and MEMS microphone sales, and Precision Devices achieved record revenues. The company also delivered $56 million in cash from operations.

  • Q3 non-GAAP gross margins were at the high end of the guidance range.
  • Q3 non-GAAP EPS was above the guidance range.
  • Audio revenue increased 8% year-over-year, driven by Hearing Health and MEMS microphone sales.
  • Precision Devices achieved record revenues, up 35% year-over-year.

Headline financials

Total Revenue

$233M

Previous: $206M+13.2%
EPS (adj)

$0.45

Previous: $0.24+87.5%
Capital Expenditures

-$28.2M

Previous: -$20.4M-38.2%
Free Cash Flow

-$500K

Previous: -$14.8M+96.6%
Net Income

$27.7M

Previous: $5.6M+394.6%
Operating Income

$34.6M

Previous: $13.6M+154.4%
Gross Profit

$96.9M

Previous: $75.2M+28.9%
Cash & Equivalents

$140M

Previous: $139M+0.6%
Total Assets

$1.72B

Previous: $1.67B+3.3%
Stock-Based Comp

$7.1M

Previous: $4.8M+47.9%

Revenue & EPS history

Knowles · Revenue · Quarterly

$233M

Q3 2021+13.2%vs Q3 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

For the fourth quarter of 2021, Knowles expects favorable product mix and strong operating leverage to drive earnings above the year ago period.

Tailwinds

  • Favorable product mix is expected.
  • Strong operating leverage is anticipated.
  • Earnings are projected to be above the year ago period.
  • Gross Profit Margin 39.0% to 41.0%
  • EPS $0.32 to $0.34

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 Q3 2021

Historical avgQ3 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

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