Kimball Electronics, Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

Kimball Electronics, Inc. (NASDAQ:KE) investors will be delighted, with the company turning in some strong numbers with its latest results. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 11% higher than the analysts had forecast, at US$375m, while EPS were US$0.15 beating analyst models by 40%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

We've discovered 2 warning signs about Kimball Electronics. View them for free.

Following the recent earnings report, the consensus from four analysts covering Kimball Electronics is for revenues of US$1.39b in 2026. This implies a definite 9.3% decline in revenue compared to the last 12 months. Per-share earnings are expected to increase 4.8% to US$0.77. Before this earnings report, the analysts had been forecasting revenues of US$1.40b and earnings per share (EPS) of US$1.01 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.

See our latest analysis for Kimball Electronics

It might be a surprise to learn that the consensus price target fell 7.1% to US$19.75, with the analysts clearly linking lower forecast earnings to the performance of the stock price. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Kimball Electronics analyst has a price target of US$24.00 per share, while the most pessimistic values it at US$12.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 7.5% annualised decline to the end of 2026. That is a notable change from historical growth of 8.6% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 7.3% per year. It's pretty clear that Kimball Electronics' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Kimball Electronics' revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Kimball Electronics' future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Kimball Electronics. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Kimball Electronics analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Kimball Electronics that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.