The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Bel Fuse (NASDAQ: BELFA) and the rest of the electronic components stocks fared in Q4.
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 10 electronic components stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 3.1% while next quarter’s revenue guidance was 0.6% above.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 7.1% since the latest earnings results.
Bel Fuse (NASDAQ: BELFA)
Founded by 26-year-old Elliot Bernstein during the electronics boom after WW2, Bel Fuse (NASDAQ: BELF.A) provides electronic systems and devices to the telecommunications, networking, transportation, and industrial sectors.
Bel Fuse reported revenues of $149.9 million, up 7% year on year. This print exceeded analysts’ expectations by 18.6%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EBITDA estimates and revenue guidance for next quarter exceeding analysts’ expectations.
"Bel's profitability levels remained strong throughout 2024 despite a challenging top line environment," said Daniel Bernstein, President and CEO.
Bel Fuse scored the biggest analyst estimates beat of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 13.1% since reporting and currently trades at $72.26.
Is now the time to buy Bel Fuse? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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 $415.4 million, up 2.5% year on year, outperforming analysts’ expectations by 5.5%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 7.4% since reporting. It currently trades at $102.99.
Is now the time to buy Advanced Energy? Access our full analysis of the earnings results here, it’s free.
Slowest Q4: Vishay Precision (NYSE: VPG)
Emerging from Vishay Intertechnology in 2010, Vishay Precision (NYSE: VPG) operates as a global provider of precision measurement and sensing technologies.
Vishay Precision reported revenues of $72.65 million, down 18.8% year on year, falling short of analysts’ expectations by 1.3%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Vishay Precision delivered the slowest revenue growth in the group. As expected, the stock is down 11.2% since the results and currently trades at $21.31.
Read our full analysis of Vishay Precision’s results here.
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 $47.38 million, down 8.7% year on year. This print missed analysts’ expectations by 3.7%. Overall, it was a slower quarter as it also produced a significant miss of analysts’ EBITDA and EPS estimates.
nLIGHT had the weakest performance against analyst estimates among its peers. The stock is down 2.9% since reporting and currently trades at $8.81.
Read our full, actionable report on nLIGHT here, it’s free.
Belden (NYSE: BDC)
With its enamel-coated copper wire used in WWI for the Allied forces, Belden (NYSE: BDC) designs, manufactures, and sells electronic components to various industries.
Belden reported revenues of $666 million, up 20.8% year on year. This result surpassed analysts’ expectations by 1.7%. Overall, it was a very strong quarter as it also logged an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ Enterprise revenue estimates.
The stock is down 13% since reporting and currently trades at $101.
Read our full, actionable report on Belden here, it’s free.
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