As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the electronic components industry, including Vishay Precision (NYSE: VPG) and its peers.
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 strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.6% while next quarter’s revenue guidance was 0.8% below.
Luckily, electronic components stocks have performed well with share prices up 26.4% on average since the latest earnings results.
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 $71.74 million, down 11.2% year on year. This print fell short of analysts’ expectations by 1.7%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.
Ziv Shoshani, Chief Executive Officer of VPG, commented, "Despite the continuing challenging business environment, we achieved the second consecutive quarter of book-to-bill over 1.00. Total orders of $74.4 million grew 2.7% sequentially and resulted in a book-to-bill of 1.04, as our Sensors and Measurement Systems reporting segments recorded book-to-bill ratios above 1.00. As the global economy faces increasing volatility due to rapidly changing tariff and trade policies, we believe our manufacturing footprint and strategy position us to navigate the direct impacts of these policies. We continue to focus on our business development growth initiatives, and are pleased with the progress thus far in our humanoid robot opportunities, among others."
Vishay Precision delivered the slowest revenue growth of the whole group. The stock is up 8.8% since reporting and currently trades at $27.09.
Read our full report on Vishay Precision here, it’s free.
Best Q1: Allient (NASDAQ: ALNT)
Founded in 1962, Allient (NASDAQ: ALNT) develops and manufactures precision and specialty-controlled motion components and systems.
Allient reported revenues of $132.8 million, down 9.5% year on year, outperforming analysts’ expectations by 5.7%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 54.5% since reporting. It currently trades at $34.28.
Is now the time to buy Allient? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $93.97 million, up 12% year on year, falling short of analysts’ expectations by 2.8%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Vicor delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 13.5% since the results and currently trades at $45.
Read our full analysis of Vicor’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 $51.67 million, up 16% year on year. This result beat analysts’ expectations by 9.1%. It was a stunning quarter as it also put up a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
nLIGHT pulled off the biggest analyst estimates beat among its peers. The stock is up 110% since reporting and currently trades at $18.01.
Read our full, actionable report on nLIGHT here, it’s free.
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 $152.2 million, up 18.9% year on year. This number topped analysts’ expectations by 1.6%. Overall, it was a stunning quarter as it also recorded an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The stock is up 22.5% since reporting and currently trades at $79.78.
Read our full, actionable report on Bel Fuse here, it’s free.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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