Knowles (NYSE: KN) reported Q2 EPS of $0.18, $0.04 better than the analyst estimate of $0.14. Revenue for the quarter came in at $188.4 million versus the consensus estimate of $179.87 million.

“We delivered Q2 revenues at the high end of our guidance, with gross margins and EPS above our expected range,” said Jeffrey Niew, president and CEO of Knowles. “Sales in our Audio segment were 10 percent higher than the year ago period driven by strong MEMS microphone shipments. In the Precision Devices segment, revenues hit record levels for the second consecutive quarter due to strong demand for capacitors across most end markets and an acquisition completed in the first quarter.”

“As we enter the second half of the year, we are seeing positive momentum in both of our business segments and expect 9 percent total company revenue growth in 2018. Our microphone business continues to grow in Mobile, Ear, and IoT. We also expect increasing sales of intelligent audio solutions across all of our end markets. In addition, I expect continued strength in capacitor demand, and our hearing health business to remain stable throughout the rest of the year.”

“As we transition from an acoustic component supplier to an audio solutions provider, we are expanding our available market and enabling macro audio trends, including processing at the edge of the network and voice as a user interface. I continue to believe that our core capabilities in acoustics, digital signal processing and algorithms are unique and unrivaled, and we are ideally positioned to grow across all of our end markets,” continued Niew.

GUIDANCE:

Knowles sees Q3 2018 EPS of $0.27-$0.33, versus the consensus of $0.29. Knowles sees Q3 2018 revenue of $205-235 million, versus the consensus of $214.75 million.

For earnings history and earnings-related data on Knowles (KN) click here.