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 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.
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The article Why Kimball International Inc.'s Shares Popped originally appeared on Fool.com.Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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