Earnings results often indicate what direction a company will take in the months ahead. With Q2 behind us, let’s have a look at Jabil (NYSE: JBL) and its peers.
The sector could see higher demand as the prevalence of advanced electronics increases in industries such as automotive, healthcare, aerospace, and computing. The high-performance components and contract manufacturing expertise required for autonomous vehicles and cloud computing datacenters, for instance, will benefit companies in the space. However, headwinds include geopolitical risks, particularly U.S.-China trade tensions that could disrupt component sourcing and production as the Trump administration takes an increasingly antagonizing stance on foreign relations. Additionally, stringent environmental regulations on e-waste and emissions could force the industry to pivot in potentially costly ways.
The 9 electronic components & manufacturing stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 5.1% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady as they are up 2.6% on average since the latest earnings results.
Jabil (NYSE: JBL)
With manufacturing facilities spanning the globe from China to Mexico to the United States, Jabil (NYSE: JBL) provides electronics design, manufacturing, and supply chain solutions to companies across various industries, from healthcare to automotive to cloud computing.
Jabil reported revenues of $7.83 billion, up 15.7% year on year. This print exceeded analysts’ expectations by 11.2%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ full-year EPS guidance estimates.
Jabil achieved the highest full-year guidance raise of the whole group. Unsurprisingly, the stock is up 22.8% since reporting and currently trades at $222.29.
Is now the time to buy Jabil? Access our full analysis of the earnings results here, it’s free.
Best Q2: TTM Technologies (NASDAQ: TTMI)
As one of the world's largest printed circuit board manufacturers with facilities spanning North America and Asia, TTM Technologies (NASDAQ: TTMI) manufactures printed circuit boards (PCBs) and radio frequency (RF) components for aerospace, defense, automotive, and telecommunications industries.
TTM Technologies reported revenues of $730.6 million, up 20.7% year on year, outperforming analysts’ expectations by 9%. The business had an exceptional quarter with a solid beat of analysts’ EPS guidance for next quarter estimates and an impressive beat of analysts’ EPS estimates.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 6.9% since reporting. It currently trades at $45.36.
Is now the time to buy TTM Technologies? Access our full analysis of the earnings results here, it’s free.
Slowest Q2: Rogers (NYSE: ROG)
With roots dating back to 1832, making it one of America's oldest continuously operating companies, Rogers (NYSE: ROG) designs and manufactures specialized engineered materials and components used in electric vehicles, telecommunications, renewable energy, and other high-performance applications.
Rogers reported revenues of $202.8 million, down 5.3% year on year, exceeding analysts’ expectations by 2%. Still, it was a slower quarter as it posted a significant miss of analysts’ EPS estimates.
Interestingly, the stock is up 5.9% since the results and currently trades at $69.43.
Read our full analysis of Rogers’s results here.
CTS (NYSE: CTS)
With roots dating back to 1896 and a global manufacturing footprint, CTS (NYSE: CTS) designs and manufactures sensors, connectivity components, and actuators for aerospace, defense, industrial, medical, and transportation markets.
CTS reported revenues of $135.3 million, up 4% year on year. This result topped analysts’ expectations by 2%. Overall, it was a strong quarter as it also put up a solid beat of analysts’ full-year EPS guidance estimates and a decent beat of analysts’ EPS estimates.
CTS had the weakest full-year guidance update among its peers. The stock is down 3.5% since reporting and currently trades at $38.99.
Read our full, actionable report on CTS here, it’s free.
Flex (NASDAQ: FLEX)
Originally known as Flextronics until its 2016 rebranding, Flex (NASDAQ: FLEX) is a global manufacturing partner that designs, engineers, and builds products for companies across industries from medical devices to solar trackers.
Flex reported revenues of $6.58 billion, up 4.1% year on year. This number surpassed analysts’ expectations by 4.9%. It was a strong quarter as it also logged a solid beat of analysts’ EPS estimates and a narrow beat of analysts’ EPS guidance for next quarter estimates.
The stock is down 5.9% since reporting and currently trades at $50.64.
Read our full, actionable report on Flex here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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