Why Shares of Knowles Fell More Than 17% Today
Shares of Knowles (NYSE: KN), a manufacturer of micro-acoustic microphones and balanced armature speakers, slumped by 17% as of midday today. The move comes after a disappointing set of second-quarter earnings and guidance.
Consumer discretionary spending is weak, and Knowles' exposure to consumer products (Apple is its largest customer, representing 16% of its sales in 2021) means it's inevitably a victim of the slowdown.
The company has two business segments. Sales in the Audio segment (audio products, microphones, speakers for mobile, computing, and health markets) declined by a whopping 14.2% in the second quarter to $128.5 million. In contrast, Precision Devices (capacitor products and radio frequency devices for technical customers) generated a 19% increase in sales in the quarter to $59.6 million.
Source Fool.com