The following is a summary of the Knowles Corporation (KN) Q1 2024 Earnings Call Transcript:
Financial Performance:
Knowles Corporation reported Q1 2024 revenue of $196 million, surpassing their guided range, with an EPS of $0.20 and cash from operations amounting to $17 million.
Notable revenue growth was seen in MedTech and specialty audio, up by 26%, and Precision Device, up by 38%, largely due to the Cornell acquisition.
Consumer MEMS microphone revenues reported a substantial 44% increase compared to the same period last year, standing at $65 million.
For the second quarter of 2024, the company projects revenues to be between $199 million and $209 million, with an EPS ranging from $0.22 to $0.26 per share.
Business Progress:
The company continues to pivot towards high-growth markets where they can offer uniquely differentiated solutions, a move exemplified by the acquisition of Cornell.
Their key market for hearing health products continues to show growth, influenced by factors such as the expansion of the global middle-class and increased hearing aid penetration.
Knowles sees a potential for growth in their revenue, EBIT margin, and cash flow throughout 2024, largely due to operational excellence and adoption of new products, along with solid performance in the consumer MEMS microphone business.
Armed with a strong balance sheet, they plan to generate robust operational cash in Q2 and over the rest of the year, and are considering potential acquisitions, share buybacks, and debt management strategies.
Despite external pressures, the company expects increased cash flow, due to their unique positioning in the MedTech and defense sectors, providing some pricing power.
Following the acquisition of Cornell, Knowles expects to further enhance their pricing strategies while continuing to deliver differentiated products to the MedTech and defense markets.
More details: Knowles IR
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