Kimball International Misses Where it Counts

Kimball International (Nasdaq: KBALB  ) reported earnings on May 2. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q3), Kimball International beat expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew. GAAP earnings per share increased significantly.

Gross margins were steady, operating margins were steady, net margins increased.

Revenue details
Kimball International logged revenue of $301.5 million. The two analysts polled by S&P Capital IQ expected revenue of $285.8 million on the same basis. GAAP reported sales were 6.0% higher than the prior-year quarter's $284.4 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.10. The two earnings estimates compiled by S&P Capital IQ predicted $0.11 per share. GAAP EPS of $0.10 for Q3 were 43% higher than the prior-year quarter's $0.07 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 17.8%, much about the same as the prior-year quarter. Operating margin was 1.1%, much about the same as the prior-year quarter. Net margin was 1.2%, 30 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $300.9 million. On the bottom line, the average EPS estimate is $0.12.

Next year's average estimate for revenue is $1.17 billion. The average EPS estimate is $0.49.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 55 members out of 60 rating the stock outperform, and five members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 give Kimball International a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kimball International is buy, with an average price target of $10.00.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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