Why Kimball International Inc.'s Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of electronics manufacturer Kimball International Inc (NASDAQ: KBALB  ) jumped 13% today after announcing earnings.

So what: Fiscal-second-quarter revenue was up 9%, to $320.3 million, and net income rose 121%, to $9.2 million, or $0.24 per share. Analysts and investors were only expecting $0.20 per share in earnings, so that's why the stock is up today. 

Now what: Electronics drove sales growth by jumping 10%, but it was furniture where most of the income growth came from. That segment's net income nearly tripled to $4.46 million in the quarter. While there's a lot of excitement today, I still think the stock is expensive at 19 times forward estimates, so I'll sit out the move today.

A great stock opportunity for this year
If you're looking for a top stock pick right now, The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report, "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2825229, ~/Articles/ArticleHandler.aspx, 10/23/2014 8:43:24 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement