NYSE$KN

Knowles Corporation · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Reported strong Q4 results driven by favorable product mix and higher Precision Devices and Hearing Health sales.

Knowles Corporation announced strong Q4 2021 financial results with GAAP and non-GAAP gross margins and EPS above the high end of their guidance range. Favorable product mix, driven by higher Precision Devices and Hearing Health sales, contributed to the positive results. The company's Adjusted EBIT margins exceeded 20%, and strong free cash flow for the full year enabled them to fully repay their convertible notes.

  • Q4 Gross Margin of 43.1% and Non-GAAP Gross Margin of 43.3%.
  • Q4 Diluted EPS of $0.98 and Non-GAAP Diluted EPS of $0.48.
  • Precision Devices bookings and sales were up about 40 percent from the year ago period.
  • FY Cash from Operations of $182 million and Free Cash Flow of $134 million.

Headline financials

Total Revenue

$234M

Previous: $243M-3.7%
EPS (adj)

$0.48

Previous: $0.41+17.1%
Capital Expenditures

$20.4M

Previous: $11.5M+77.4%
Free Cash Flow

$134M

No prior period
Net Income

$92.6M

Previous: $29.6M+212.8%
Operating Income

$40.6M

Previous: $37.6M+8.0%
Gross Profit

$101M

Previous: $92M+9.7%
Cash & Equivalents

$68.9M

Previous: $148M-53.4%
Total Assets

$1.73B

Previous: $1.65B+4.6%
Stock-Based Comp

$6.5M

Previous: $4.9M+32.7%

Revenue & EPS history

Knowles · Revenue · Quarterly

$234M

Q4 2021-3.7%vs Q4 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Forward guidance

For the first quarter of 2022, Knowles expects favorable product mix and improved operating leverage to drive non-GAAP gross margin and earnings above the year ago period.

Tailwinds

  • Expects favorable product mix.
  • Improved operating leverage.
  • Drive non-GAAP gross margin above the year ago period.
  • Drive earnings above the year ago period.
  • Confident in progression towards mid-term financial targets.

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 Q4 2021

Historical avgQ4 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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