Let’s dig into the relative performance of Vertiv (NYSE: VRT) and its peers as we unravel the now-completed Q3 electrical systems earnings season.

Like many equipment and component manufacturers, electrical systems companies are buoyed by secular trends such as connectivity and industrial automation. More specific pockets of strong demand include Internet of Things (IoT) connectivity and the 5G telecom upgrade cycle, which can benefit companies whose cables and conduits fit those needs. But like the broader industrials sector, these companies are also at the whim of economic cycles. Interest rates, for example, can greatly impact projects that drive demand for these products.

The 12 electrical systems stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.8% while next quarter’s revenue guidance was 1.1% below.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Vertiv (NYSE: VRT)

Formerly part of Emerson Electric, Vertiv (NYSE: VRT) manufactures and services infrastructure technology products for data centers and communication networks.

Vertiv reported revenues of $2.68 billion, up 29% year on year. This print exceeded analysts’ expectations by 3.4%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ organic revenue estimates and a beat of analysts’ EPS estimates.

"Vertiv's third quarter results demonstrate our unique position in enabling the future of digital infrastructure," said Giordano Albertazzi, Vertiv's Chief Executive Officer.

Vertiv achieved the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 3.4% since reporting and currently trades at $180.81.

Read why we think that Vertiv is one of the best electrical systems stocks, our full report is free.

Best Q3: Thermon (NYSE: THR)

Creating the first packaged tracing systems, Thermon (NYSE: THR) is a leading provider of engineered industrial process heating solutions for process industries.

Thermon reported revenues of $131.7 million, up 14.9% year on year, outperforming analysts’ expectations by 10.3%. The business had a stunning quarter with a beat of analysts’ EPS and EBITDA estimates.

Thermon pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 19.3% since reporting. It currently trades at $35.09.

Is now the time to buy Thermon? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Atkore (NYSE: ATKR)

Protecting the things that power our world, Atkore (NYSE: ATKR) designs and manufactures electrical safety products.

Atkore reported revenues of $752 million, down 4.6% year on year, exceeding analysts’ expectations by 2.5%. Still, it was a slower quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

Atkore delivered the slowest revenue growth in the group. The stock is flat since the results and currently trades at $66.95.

Read our full analysis of Atkore’s results here.

Verra Mobility (NASDAQ: VRRM)

Aiming to wrap technology and data around a historically manual and paper-based industry, Verra Mobility (NYSE: VRRM) is a leading provider of smart mobility technology to address tolls and violations, title and registration services, as well as safety and traffic enforcement.

Verra Mobility reported revenues of $261.9 million, up 16.1% year on year. This print beat analysts’ expectations by 9.8%. It was an exceptional quarter as it also logged an impressive beat of analysts’ revenue estimates and full-year revenue guidance exceeding analysts’ expectations.

Verra Mobility had the weakest full-year guidance update among its peers. The stock is down 8.5% since reporting and currently trades at $21.82.

Read our full, actionable report on Verra Mobility here, it’s free for active Edge members.

Powell (NASDAQ: POWL)

Originally a metal-working shop supporting local petrochemical facilities, Powell (NYSE: POWL) has grown from a small Houston manufacturer to a global provider of electrical systems.

Powell reported revenues of $298 million, up 8.3% year on year. This number surpassed analysts’ expectations by 1.8%. Overall, it was a strong quarter as it also produced a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

The stock is flat since reporting and currently trades at $321.32.

Read our full, actionable report on Powell here, it’s free for active Edge members.

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 thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), 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 potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.

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