Stock Story -
What Happened:Shares of global electronics contract manufacturer Kimball Electronics (NYSE:KE) fell 15.4% in the afternoon session after the company reported second-quarter earnings results, with revenue and EPS falling below expectations. Notably, net sales in the automotive vertical, its largest segment, fell 9% year on year, driven by "continued weak demand in Europe, incremental softness in North America, and a decline in China." Guidance was also weak as its full-year revenue guidance missed. Management highlighted that the guidance includes expectations for continued macro weaknesses till fiscal 2025 based on early indications from customers. Overall, this was a weaker quarter.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Kimball Electronics? Find out by reading the original article on StockStory, it’s free.
What is the market telling us:Kimball Electronics's shares are somewhat volatile and over the last year have had 7 moves greater than 5%. But moves this big are very rare even for Kimball Electronics and that is indicating to us that this news had a significant impact on the market’s perception of the business.
Kimball Electronics is down 30.9% since the beginning of the year, and at $18.09 per share it is trading 41.8% below its 52-week high of $31.11 from August 2023. Investors who bought $1,000 worth of Kimball Electronics's shares 5 years ago would now be looking at an investment worth $1,313.
![Why Kimball Electronics (KE) Stock Is Nosediving](https://d68-invdn-com.investing.com/content/pic3ccd4af221f547c4efad7e753bc204a1.jpeg)