Kimball Electronics Gears Up to Report Q2 Earnings: What to Expect?

Kimball Electronics, Inc. KE is scheduled to report second-quarter fiscal 2026 results on Feb. 4, after market close.The Zacks Consensus Estimate for sales is pegged at $342.5 million, indicating a 4.2% decline from the prior-year quarter’s reported figure.The consensus mark for earnings is pegged at 28 cents per share, suggesting a year-over-year decline of 3.5%.Kimball Electronics’ earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 49.71%.Let’s see how things might have shaped up prior to the announcement.Kimball Electronics, Inc. Price and EPS Surprise Kimball Electronics, Inc. price-eps-surprise | Kimball Electronics, Inc. QuoteFactors Likely to Influence KE’s Q2 ResultsKimball Electronics’ second-quarter numbers are likely to reflect benefits from its focus on expanding in the high-growth medical contract manufacturing space. The new 300,000 sq. ft. facility in Indianapolis has positioned KE as a key player in the medical product manufacturing domain.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 been driving the demand for medical products. With its enhanced production capacity, Kimball Electronics is anticipated to have capitalized on this opportunity during the to-be-reported quarter.Kimball Electronics is also bringing operational improvements and cost discipline by reducing inventory, cash conversion cycle, and selling, general & administrative expenses. The company has also reduced its debts significantly, which helped lower its interest expenses. These factors are likely to have positively impacted the bottom line in the to-be-reported quarter.However, industry-wide softness across the automotive and industrial segments is expected to have more than offset the benefits of strong performance in the medical division. Heavy dependence on a few large medical and automotive customers is an added concern for the company.Earnings Whispers for Kimball Electronics StockOur proven model does not conclusively predict an earnings beat for KE this time around. 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 Kimball Electronics carries a Zacks Rank #3, it has an Earnings ESP of 0.00% at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.Stocks to ConsiderHere 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:Microchip Technology Incorporated MCHP has an Earnings ESP of +2.18% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.Microchip Technology is set to report third-quarter fiscal 2026 results on Feb. 5. The Zacks Consensus Estimate for MCHP’s third-quarter earnings is pegged at $1.51 per share. The estimate has moved north 6 cents over the past 30 days, indicating an increase of 15.3% from the year-ago quarter’s reported figure.Lattice Semiconductor Corporation LSCC has an Earnings ESP of +3.67% and a Zacks Rank #2 at present.Lattice Semiconductor is set to report fourth-quarter 2025 results on Feb. 10. The Zacks Consensus Estimate for LSCC’s fourth-quarter earnings is pegged at $1.05 per share, unchanged over the past 60 days, indicating an increase of 16.7% from the year-ago quarter’s reported figure.Cloudflare Inc. NET has an Earnings ESP of +0.20% and a Zacks Rank #3 at present.Cloudflare is slated to report fourth-quarter 2025 results on Feb. 10. The Zacks Consensus Estimate for NET’s fourth-quarter earnings is pegged at 92 cents per share, revised upward by a penny over the past 30 days, indicating a rise of 22.7% from the year-ago quarter’s reported figure.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.See Our Newest 5 Stocks Set to Double Picks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Microchip Technology Incorporated (MCHP): Free Stock Analysis Report Lattice Semiconductor Corporation (LSCC): Free Stock Analysis Report Kimball Electronics, Inc. (KE): Free Stock Analysis Report Cloudflare, Inc. (NET): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks