Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at nLIGHT (NASDAQ: LASR) and the best and worst performers in the electronic components industry.

Like many equipment and component manufacturers, electronic components companies are buoyed by secular trends such as connectivity and industrial automation. More specific pockets of strong demand include data centers and telecommunications, which can benefit companies whose optical and transceiver offerings fit those markets. But like the broader industrials sector, these companies are also at the whim of economic cycles. Consumer spending, for example, can greatly impact these companies’ volumes.

The 12 electronic components stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was 3.6% below.

While some electronic components stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.3% since the latest earnings results.

nLIGHT (NASDAQ: LASR)

Founded by a former CEO and Harvard-educated entrepreneur Scott Keeneyn, nLIGHT (NASDAQ: LASR) offers semiconductor and fiber lasers to the industrial, aerospace & defense, and medical sectors.

nLIGHT reported revenues of $56.13 million, up 10.9% year on year. This print exceeded analysts’ expectations by 1.4%. Despite the top-line beat, it was still a slower quarter for the company with revenue guidance for next quarter missing analysts’ expectations.

"Driven by record results in Aerospace & Defense, third quarter revenue of $56.1 million was above the midpoint of our guidance range and increased 11% compared to the third quarter of 2023,” commented Scott Keeney, nLIGHT’s President & Chief Executive Officer.

nLIGHT scored the fastest revenue growth of the whole group. Still, the market seems discontent with the results. The stock is down 15.2% since reporting and currently trades at $10.09.

Read our full report on nLIGHT here, it’s free.

Best Q3: Vicor (NASDAQ: VICR)

Founded by a researcher at the Massachusetts Institute of Technology, Vicor (NASDAQ: VICR) provides electrical power conversion and delivery products for a range of industries.

Vicor reported revenues of $93.17 million, down 13.6% year on year, outperforming analysts’ expectations by 9.3%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates.

Vicor delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 15.2% since reporting. It currently trades at $50.

Is now the time to buy Vicor? Access our full analysis of the earnings results here, it’s free.

Slowest Q3: Novanta (NASDAQ: NOVT)

Originally a pioneer in the laser scanning industry during the late 1960s, Novanta (NASDAQ: NOVT) offers medicine and manufacturing technology to the medical, life sciences, and manufacturing industries.

Novanta reported revenues of $244.4 million, up 10.3% year on year, exceeding analysts’ expectations by 0.9%. Still, it was a softer quarter as it posted full-year EBITDA guidance missing analysts’ expectations.

As expected, the stock is down 12% since the results and currently trades at $153.50.

Read our full analysis of Novanta’s results here.

Corning (NYSE: GLW)

Supplying windows for some of the United States’s earliest spacecraft, Corning (NYSE: GLW) provides glass and other electronic components for the consumer electronics, telecommunications, automotive, and healthcare industries.

Corning reported revenues of $3.73 billion, up 7.9% year on year. This print was in line with analysts’ expectations. Overall, it was a satisfactory quarter as it also produced an impressive beat of analysts’ Optical Communications revenue estimates.

The stock is flat since reporting and currently trades at $47.32.

Read our full, actionable report on Corning here, it’s free.

Advanced Energy (NASDAQ: AEIS)

Pioneering technologies for radio frequency power delivery, Advanced Energy (NASDAQ: AEIS) provides power supplies, thermal management systems, and measurement and control instruments for various manufacturing processes.

Advanced Energy reported revenues of $374.2 million, down 8.7% year on year. This result met analysts’ expectations. It was a strong quarter as it also put up EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ adjusted operating income estimates.

The stock is up 5.9% since reporting and currently trades at $114.29.

Read our full, actionable report on Advanced Energy here, it’s free.

Market Update

Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.

Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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