Knowles Corp (KN) Q3 2023 Earnings: Revenue at $175.1M, Diluted EPS at $0.18
Knowles Corp (NYSE:KN) reports Q3 2023 revenue of $175.1 million, with a gross profit of $77.5 million.
Q3 diluted earnings per share (EPS) stood at $0.18, with non-GAAP diluted EPS at $0.31.
Net cash provided by operating activities was $39.9 million.
The company completed the acquisition of Cornell Dubilier.
On November 2, 2023, Knowles Corp (NYSE:KN), a leading global supplier of high-performance components and solutions, announced its Q3 2023 financial results. The company reported revenues of $175.1 million, a slight increase from Q2 2023's $173.0 million but a decrease from Q3 2022's $178.2 million. The gross profit for the quarter was $77.5 million, representing 44.3% of revenues. The diluted earnings per share (EPS) stood at $0.18, while the non-GAAP diluted EPS was $0.31. The net cash provided by operating activities was $39.9 million.
Performance Highlights and Challenges
Knowles Corp's Q3 results exceeded the company's gross margin, non-GAAP diluted EPS, and cash from operations guidance. The MedTech & Specialty Audio (MSA) segment saw a 20% revenue growth year-over-year. However, the Precision Devices (PD) segment continued to face challenges due to demand weakness associated with excess channel inventory. The Consumer MEMS Microphones (CMM) segment saw a return to year-over-year growth in Q3 revenues.
Acquisition of Cornell Dubilier
The company also announced the completion of the Cornell Dubilier acquisition. This strategic acquisition is expected to significantly expand Knowles' serviceable available market and align with key growth tailwinds, including increasing defense budgets, medtech and critical care application growth, as well as industrial electrification and implementation of next-generation fast charging architectures.
Q4 2023 Outlook
For Q4 2023, Knowles Corp expects revenues to be between $210.0 million and $220.0 million. The GAAP diluted earnings per share are projected to be between $0.17 and $0.21, with non-GAAP diluted earnings per share between $0.27 and $0.31. The net cash provided by operating activities is expected to be between $40.0 million and $50.0 million.
Financial Tables Summary
The financial tables provided in the earnings report show a detailed breakdown of the company's performance. The consolidated statements of earnings show a year-over-year decrease in revenues but an increase in gross profit. The diluted earnings per share also saw a significant increase from $0.03 in Q3 2022 to $0.18 in Q3 2023. The company's consolidated balance sheets and statements of cash flows also provide further insights into the company's financial health and operations.
Despite the challenges faced in 2023, Knowles Corp's ability to generate strong cash flows and the positive ordering trends in the PD segment indicate a promising outlook for the company.
Explore the complete 8-K earnings release (here) from Knowles Corp for further details.
This article first appeared on GuruFocus.
