Microvast Holdings announces departure of chief financial officer
In a move to enhance shareholder engagement and governance standards, Kimball Electronics, Inc. (NASDAQ:KE) announced amendments to its corporate bylaws and a change in its fiscal year-end date. The changes, detailed in an 8-K filing with the Securities and Exchange Commission today, reflect the company's responsiveness to shareholder input and its commitment to corporate governance best practices.
The Jasper, Indiana-based manufacturer of printed circuit boards has introduced a new proxy access provision, allowing shareholders, individually or in groups of up to 20, who have held at least three percent of the company's outstanding stock for a minimum of three years, to nominate director candidates.
These nominees could constitute up to two directors or twenty-five percent of the board, whichever is greater, to be included in the company's annual meeting proxy materials.
Additionally, the company has modified its bylaws to grant shareholders owning at least 25% of the outstanding common stock the right to call special meetings, subject to compliance with specified requirements.
In terms of board governance, Kimball Electronics has revised its director resignation policy. Now, in uncontested elections, if a director fails to receive a majority of the votes cast, they must submit an irrevocable resignation.
The board is then obligated to act promptly to determine whether to accept the resignation, considering the best interests of the shareholders and the company, and disclose its decision within 90 days after the certification of the shareholder vote.
In other recent news, Kimball Electronics has experienced several significant developments. The company's fourth-quarter fiscal year 2024 earnings and revenue results surpassed estimates with a reported $430 million revenue and EBITDA of $32 million.
However, the company disclosed significant program losses in the automotive sector, which led to a reduction in the stock price target by Cantor Fitzgerald, Lake Street Capital Markets, and B.Riley Securities.
Kimball Electronics also completed the divestiture of its automation, test, and measurement business to focus more on its core EMS operations. Despite a 13% decrease in Q4 net sales across all sectors, the company remains committed to cost containment and positive cash flow generation.
For fiscal year 2025, Kimball Electronics projects net sales to be between $1.440 billion and $1.540 billion, representing an 11% year-over-year decrease at the midpoint. Despite these challenges, the company is exploring growth opportunities in the medical sector and new geographical markets.
InvestingPro Insights
In light of the recent governance changes at Kimball Electronics, Inc., it's worth noting some financial metrics and analyst insights that may interest shareholders. According to InvestingPro data, Kimball Electronics has a market capitalization of $439.26 million and is trading at a P/E ratio of 21.91, which adjusts to a more attractive 11.32 when looking at the last twelve months as of Q4 2024. However, the company's revenue has experienced a decline of 5.97% over the same period, reflecting some of the challenges it faces.
InvestingPro Tips suggest that analysts have revised their earnings expectations downwards for the upcoming period and anticipate a sales decline in the current year. This aligns with the company's recent revenue performance. Despite these concerns, Kimball Electronics is trading at a low revenue valuation multiple and near its 52-week low, which could present a potential opportunity for investors. Additionally, the company's liquid assets exceed its short-term obligations, indicating a solid financial position for the near term.
For those looking to delve deeper into the financial health and future prospects of Kimball Electronics, there are over 8 additional InvestingPro Tips available, which can provide further analysis and guidance. Visit https://www.investing.com/pro/KE for a comprehensive look at these insights.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.