Kimball Electronics to Report Q1 Earnings: What's in the Cards?

Kimball Electronics KE is scheduled to report first-quarter fiscal 2026 results on Nov. 5, after market close.

For the fiscal first quarter, the Zacks Consensus Estimate for sales is pegged at $344 million, indicating a decline of 8.1% from the prior-year quarter’s reported figure.

The consensus mark for earnings is pegged at 24 cents per share, suggesting an increase of 9.1% from the year-ago quarter’s reported figure.

The company’s earnings couldn’t surpass the Zacks Consensus Estimate in any of the trailing four quarters, the average negative surprise being 1.28%.

Let’s see how things are shaping up for this announcement.

Factors Likely to Influence KE’s Q1 Results

Kimball Electronics’ first-quarter fiscal 2026 results are likely to benefit from the 300,000 sq. ft. Indianapolis facility, positioning it as a key player in the medical contract manufacturing space. Moreover, its focus on full-device assembly, cold chain, and precision plastics will positively impact its top line in the to-be-reported quarter.

The fiscal first quarter is expected to have benefited from its efforts that helped recover demand from its largest medical customer post-FDA recall. As Kimbal Electronics has become the sole supplier for assembly, the company’s top line is expected to have remained stable in the upcoming quarter.

Steady demand for medical devices due to a rise in the aging population, growing access to healthcare and connected drug-delivery systems, combined with the miniaturization of medical devices, has propelled this electronic manufacturer, and this is likely to reflect in the upcoming results.

KE is also bringing operational improvements and cost discipline by reducing inventory, cash conversion cycle and SG&A expenses. The company has also reduced its debts by 50% reducing the impact of interest expenses on the bottom line. These factors are likely to have positively impacted the bottom line in the to-be-reported quarter.

However, KE’s automotive and industrial segments are experiencing a decline due to industry-wide softness affecting its top line. Heavy dependence on a few large medical and automotive customers is also a concern for the company. Given all these factors, KE’s to-be-reported quarter’s results are likely to be moderate if macro headwinds remain as they are.

Earnings Whispers for Kimball Electronics

Our proven model does not conclusively predict an earnings beat for KE this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.

Though KE carries a Zacks Rank #3, it has an Earnings ESP of -14.89% at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model indicates that they possess the right combination of factors to exceed earnings expectations in their upcoming releases:

Fair Isaac FICO has an Earnings ESP of +0.46% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Fair Isaac is set to report fourth-quarter fiscal 2025 results on Nov. 5. The Zacks Consensus Estimate for FICO’s fourth-quarter earnings is pegged at $7.34 per share, up by 2 cents over the past 30 days, indicating an increase of 12.2% from the year-ago quarter’s reported figure.

StoneCo STNE has an Earnings ESP of +7.81% and sports a Zacks Rank #1 at present.

Stone Co is set to report third-quarter 2025 results on Nov. 6. The Zacks Consensus Estimate for STNE’s third-quarter earnings is pegged at 43 cents per share, up by 2 cents over the past 30 days, indicating an increase of 22.9% from the year-ago quarter’s reported figure.

Lumentum LITE has an Earnings ESP of +2.14% and carries a Zacks Rank #2 at present.

Lumentum is slated to report first-quarter fiscal 2026 results on Nov. 4. The Zacks Consensus Estimate for LITE’s first-quarter earnings is pegged at $1.03 per share, unchanged over the past 60 days, indicating a rise of 472.2% from the year-ago quarter’s reported figure.

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This article originally published on Zacks Investment Research (zacks.com).

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