NYSE$KN

Knowles Corporation · Q4 2024 earnings

Q4 2024 earnings · · After market close · Investor relations

Briefing

Knowles Corporation reported its financial results for the fourth quarter and full year ended December 31, 2024.

Knowles Corporation reported a 2% increase in fourth-quarter revenues from continuing operations year-over-year, reaching $142.5 million. Net earnings for the quarter were $18.5 million, with diluted EPS at $0.12. The company also generated $35.1 million in net cash from operations.

  • Fourth quarter revenues from continuing operations increased 2% year-over-year.
  • Full year revenues from continuing operations increased 21% year-over-year.
  • Generated $35.1 million in net cash from operations in Q4 and $130.1 million for the full year.
  • Board of Directors authorized an additional $150 million for the share repurchase program.

Headline financials

Total Revenue

$143M

Previous: $215M-33.8%
EPS (adj)

$0.27

Previous: $0.28-3.6%
Gross Margin

42.7%

Previous: 42.1%+1.4%
Non-GAAP Gross Margin

44.1%

Previous: 43.8%+0.7%
Adjusted EBITDA Margin

24.4%

Previous: 24.2%+0.8%
Net Cash from Ops

$35.1M

Previous: $60.4M-41.9%
Net Income

$18.5M

Previous: $47.4M-61.0%
Operating Income

$15.4M

Previous: $13.6M+13.2%
Gross Profit

$60.9M

Previous: $78.4M-22.3%

Revenue & EPS history

Knowles · Revenue · Quarterly

$143M

Q4 2024-33.8%vs Q4 2023
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Forward guidance

For the first quarter of 2025, Knowles expects revenues from continuing operations to be between $124 million and $134 million. Diluted earnings per share from continuing operations are projected to be between $0.06 and $0.10, with non-GAAP diluted earnings per share between $0.16 and $0.20. Net cash provided by operating activities is expected to be between $(15) million and $(5) million.

Tailwinds

  • New Specialty Film product line expected to provide new revenue growth area as manufacturing capacity ramps up through 2025 and 2026.
  • Increased order activity and existing backlog in Medical and Defense markets add confidence in revenue and earnings growth resuming in Q2 2025.
  • Large order received in Q1 in the Energy market provides confidence in organic revenue growth in 2026 and beyond.
  • Exited 2024 with net debt leverage ratio well below one.
  • 2025 expected to be another year of solid cash generation, providing flexibility for capital allocation.

Headwinds

  • Precision Devices revenues were lower than expected in Q4 2024 due to slower ramp-up of new Specialty Film product line.
  • Q1 2025 Net cash provided by operating activities includes $12 million of cash used in settlement of supplier obligations related to the Consumer MEMS Microphone business.
  • An additional $12 million of supplier obligations related to the Consumer MEMS Microphone business are expected to be settled in Q2 2025.
  • GAAP results for Q1 2025 are expected to include approximately $0.06 per share in stock-based compensation expense.
  • GAAP results for Q1 2025 are expected to include approximately $0.04 per share in intangibles amortization expense.

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 2024

Historical avgQ4 2024

-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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