Kimball Int'l (KBAL) Misses Q2 EPS by 6c

Kimball Int'l (NASDAQ: KBAL) reported Q2 EPS of $0.09, $0.06 worse than the analyst estimate of $0.15. Revenue for the quarter came in at $136.2 million versus the consensus estimate of $140.9 million.

Summary and Outlook

“With the acquisition of Poppin complete, we are moving forward with our stage one priorities, notably scaling Poppin in secondary markets where Kimball International is well-established, launching Poppin privacy pods into our existing dealer network, building work from home and corporate partnerships for Poppin and our Etc. brand, and developing a complementary Poppin Pro Dealer Program.

“At the same time, we are making investments in our Health business, where we have expanded our expertise with strategic hires and plan to launch six new clinical products by the end of fiscal 2021. In Hospitality, we continue to partner closely with our customers in navigating both the impact of the pandemic and the temporary impact of higher freight costs.

“Post pandemic, what we knew as the office will change into an exciting hybrid workplace. The office will be the center for collaboration, community and culture; the home will be an extension of work; and new, smaller office formats will emerge in satellite offices in secondary markets. Our deep knowledge in residential design, our multi-brand portfolio and new omnichannel capabilities will enable us to access each end market in the broader new workplace.

“Looking ahead, we expect third quarter organic revenue to be similar to second quarter levels based on our backlog of $144.9 million, of which approximately $80 million is expected to ship in the third quarter. While freight costs are expected to further pressure fiscal third quarter gross margin, we anticipate a sequential increase in gross margin in the fourth quarter as price increases materialize and clarity around the new forming workplace begins to take shape,” Ms. Juster concluded.

For earnings history and earnings-related data on Kimball Int'l (KBAL) click here.

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