Knowles (NYSE:KN) Posts Earnings Results, Beats Estimates By $0.02 EPS

Knowles (NYSE:KN) announced its quarterly earnings data on Thursday. The communications equipment provider reported $0.38 earnings per share for the quarter, beating analysts’ consensus estimates of $0.36 by $0.02, FiscalAI reports. Knowles had a net margin of 10.76% and a return on equity of 11.88%. The company had revenue of $184.00 million during the quarter, compared to analyst estimates of $172.10 million. During the same quarter last year, the business posted $0.33 EPS. The firm’s revenue for the quarter was up 20.3% on a year-over-year basis.

Here are the key takeaways from Knowles’ conference call:

• Q3 results exceeded guidance, with revenue up 20% year over year to $184 million, EPS of $0.38, and operating cash flow of $45 million. Management now expects 2026 revenue growth of 16% and adjusted EBITDA growth of 24%.
• Precision Devices revenue rose 33% to $117 million, supported by broad demand across medical, defense, industrial, and electrification markets. The segment posted a 1.5 book-to-bill ratio, nearly $180 million of Q3 orders, and a robust backlog.
• Knowles plans to add capacity across most Precision Devices product lines, with initial capacity expected online in late Q1 and full availability in the second half of 2027. The company also sees a path to expanding adjusted EBITDA margins from above 25% in 2026 to approximately 30% within two to three years.
• Management expects several newer growth platforms—including Micro Solutions Group, pulse-power capacitors, attenuators, inductors, and follow-on energy applications—to expand its addressable market beyond the core business. Micro Solutions revenue is projected to exceed $5 million in 2027 and $10 million in 2028.
• Capacity constraints are expected to limit sequential growth in Precision Devices during early 2027, while the end of a low-margin stamping program creates a 2%–3% headwind for MSA revenue, particularly in the first half. Management expects total revenue to be only slightly down sequentially in the March quarter despite strong year-over-year growth.

Knowles Stock Down 3.7%

Shares of NYSE:KN traded down $1.23 during trading on Friday, reaching $32.15. The stock had a trading volume of 1,441,104 shares, compared to its average volume of 656,613. The company has a current ratio of 3.20, a quick ratio of 1.75 and a debt-to-equity ratio of 0.16. The company has a market capitalization of $2.75 billion, a P/E ratio of 39.20 and a beta of 1.59. The firm’s 50-day simple moving average is $35.73 and its 200 day simple moving average is $35.87. Knowles has a one year low of $20.57 and a one year high of $42.93.

Knowles News Summary

Here are the key news stories impacting Knowles this week:

• Positive Sentiment: Knowles reported third-quarter earnings of $0.38 per share, above the $0.36 analyst consensus, while revenue reached $184 million, surpassing expectations of $172.1 million. Revenue increased 20.3% year over year, and earnings rose from $0.33 per share in the prior-year quarter. Knowles third-quarter earnings report
• Positive Sentiment: The company issued an upbeat fourth-quarter outlook, projecting earnings per share of $0.390-$0.430 versus the $0.360 consensus and revenue of $180 million-$190 million versus expectations of $174.5 million. The guidance indicates continued momentum and could support future earnings estimates.
• Positive Sentiment: Operational results also improved, with gross profit increasing to $81.3 million, operating profit reaching $30.7 million and operating cash flow rising to $44.6 million, according to the post-earnings analysis. Knowles third-quarter results analysis
• Neutral Sentiment: Susquehanna cut its price target for Knowles. The move may weigh on sentiment, although the article details provided do not specify the revised target or the analyst’s rationale. Susquehanna cuts Knowles price target
• Negative Sentiment: Insider trading data showed 15 open-market insider sales and no purchases over the past six months, including substantial sales by the CEO and other senior executives. While sales may reflect personal liquidity or scheduled transactions, the lack of insider buying can reinforce cautious investor sentiment.
• Negative Sentiment: With Knowles trading at a reported P/E ratio above 40, investors may be taking profits after the earnings rally and demanding stronger evidence that the improved growth outlook justifies the company’s valuation.

Analysts Set New Price Targets

KN has been the topic of several recent research reports. Zacks Research cut shares of Knowles from a “strong-buy” rating to a “hold” rating in a report on Tuesday, September 22nd. Susquehanna dropped their price objective on shares of Knowles from $40.00 to $35.00 and set a “neutral” rating on the stock in a research note on Wednesday. Robert W. Baird set a $50.00 price objective on shares of Knowles in a report on Friday. Wall Street Zen lowered Knowles from a “strong-buy” rating to a “buy” rating in a report on Saturday, August 1st. Finally, Weiss Ratings cut Knowles from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Friday. Two research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $41.00.

Insider Buying and Selling at Knowles

In other news, SVP Raymond Cabrera sold 6,178 shares of the company’s stock in a transaction on Monday, July 27th. The stock was sold at an average price of $36.28, for a total transaction of $224,137.84. Following the transaction, the senior vice president directly owned 127,945 shares of the company’s stock, valued at approximately $4,641,844.60. This represents a 4.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Cheryl Shavers sold 6,618 shares of the firm’s stock in a transaction on Monday, August 17th. The stock was sold at an average price of $39.27, for a total value of $259,888.86. Following the completion of the sale, the director directly owned 35,723 shares of the company’s stock, valued at $1,402,842.21. The trade was a 15.63% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 2.24% of the stock is currently owned by insiders.

About Knowles

Knowles Corporation (NYSE: KN) is a global manufacturer of advanced electronic components and solutions for audio, communications, medical, industrial and other specialized applications. The company develops products that support sound capture, audio processing, signal management and high-performance connectivity in a range of electronic devices and systems.

Its portfolio includes microelectromechanical systems (MEMS) microphones, audio processors, speakers, receivers, balanced armature drivers and other acoustic components.