Knowles Corp (NYSE:KN) JMP Securities lowered its price target to $24 from $27 and maintained its “market outperform” rating on the stock.
The price target decrease follows a range of negative developments with smartphone component vendors and ODMs, the firm said.
JMP Securities also reduced its revenue estimates for the 2015 fourth quarter to $295 million from $305 million.
“Our new estimates reflect lower smartphone industry growth assumptions and slightly higher-than-originally-anticipated audience declines, offset in part by certain favorable tailwinds for Knowles that include the MEMs Mic count increase in the iPhone 6s (AAPL, MO, $165 PT), better ASPs in newer platforms, Op Ex discipline, and improving sales trends in China,” the firm said in an analyst note.
The Itasca, IL-based company is a supplier of micro-acoustic solutions and specialty components for mobile communications, consumer electronics, medical technology, military, aerospace and industrial markets.
Shares of Knowles are declining by 1.47% to $14.07 during mid-afternoon trading on Wednesday.
Knowles Corp Equity Analysis
Knowles Corp (NYSE:KN) opened trading today as $14.19 and is trading in the range of 13.53-14.74 today. Knowles Corp’s current market cap stands at $1.26 billion.
Compared to other peers in the Communication Equipment sector, Knowles Corp hasn’t performed in terms of quarterly revenue growth year over year at -0.02 vs. the industry average of 0.14. Knowles Corp’s earnings per share is currently at -0.56, which is below then the sector average of 0.03.
Knowles Corp mean target price is $21.22 according to First Call. This presents a solid upside to the current price of the equity. The Mean Recommendation sits at 2.6
The most recent analyst actions consisted of Craig Hallum upgrading the stock on January 4th and FBR Capital initiating coverage with a downgrade rating back in October.
The current quarter EPS consensus estimate is .20 with revenue estimates of 299.41M. Sales are expected to grow at a 4.70% rate. Knowles Corp reported actual earnings last quarter of .16 which beats the .11 consensus estimate, a 45.50% surprise.
Knowles Corporation designs, manufactures, and sells products and components to the mobile communications, consumer electronics, medical technology, telecommunications infrastructure, military, aerospace, and industrial markets worldwide. The company operates in two segments, Mobile Consumer Electronics and Specialty Components. The Mobile Consumer Electronics segment designs and manufactures acoustic products, including microphones, speakers, receivers, and integrated modules for the handset, tablet, and other consumer electronic markets. The acoustic components comprise analog and digital microphones, micro-electro-mechanical systems microphones, surface mounted device microphones, multi-functional devices, ultrasonic sensors, and integrated audio sub-systems. The Specialty Components segment designs and manufactures electronic components used in medical and life science applications; and solutions and components used in communications infrastructure and various other markets. This segment offers transducer products used primarily in hearing aid applications in the commercial audiology markets; oscillator products primarily for the telecom infrastructure market; and capacitor products used in various applications, such as radio, radar, satellite, power supplies, transceivers, and medical implants for the defense, aerospace, telecommunication, and life sciences markets. The company sells its products to original equipment manufacturers; and to its contract manufacturers and suppliers, as well as through distributors worldwide. Knowles Corporation was incorporated in 2013 and is headquartered in Itasca, Illinois.