Let’s dig into the relative performance of Whirlpool (NYSE: WHR) and its peers as we unravel the now-completed Q1 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 13 electrical systems stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 2.8% while next quarter’s revenue guidance was 2.9% below.

Luckily, electrical systems stocks have performed well with share prices up 15% on average since the latest earnings results.

Weakest Q1: Whirlpool (NYSE: WHR)

Credited with introducing the first automatic washing machine, Whirlpool (NYSE: WHR) is a manufacturer of a variety of home appliances.

Whirlpool reported revenues of $3.62 billion, down 19.4% year on year. This print fell short of analysts’ expectations by 1%. Overall, it was a softer quarter for the company with full-year EPS guidance missing analysts’ expectations significantly and a significant miss of analysts’ adjusted operating income estimates.

Whirlpool delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 23.8% since reporting and currently trades at $96.16.

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

Best Q1: Acuity Brands (NYSE: AYI)

One of the pioneers of smart lights, Acuity (NYSE: AYI) designs and manufactures light fixtures and building management systems used in various industries.

Acuity Brands reported revenues of $1.18 billion, up 21.7% year on year, outperforming analysts’ expectations by 3.1%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $287.07.

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

Methode Electronics (NYSE: MEI)

Founded in 1946, Methode Electronics (NYSE: MEI) is a global supplier of custom-engineered solutions for Original Equipment Manufacturers (OEMs).

Methode Electronics reported revenues of $257.1 million, down 7.3% year on year, exceeding analysts’ expectations by 12.4%. Still, it was a softer quarter as it posted full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly.

Methode Electronics delivered the biggest analyst estimates beat but had the weakest full-year guidance update in the group. As expected, the stock is down 35.8% since the results and currently trades at $6.60.

Read our full analysis of Methode Electronics’s results here.

Kimball Electronics (NASDAQ: KE)

Founded in 1961, Kimball Electronics (NYSE: KE) is a global contract manufacturer specializing in electronics and manufacturing solutions for automotive, medical, and industrial markets.

Kimball Electronics reported revenues of $374.6 million, down 11.9% year on year. This result surpassed analysts’ expectations by 10.8%. It was an exceptional quarter as it also logged an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The stock is up 31.6% since reporting and currently trades at $19.38.

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

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 $2.04 billion, up 24.2% year on year. This number topped analysts’ expectations by 5.2%. Overall, it was a very strong quarter as it also recorded an impressive beat of analysts’ organic revenue estimates and full-year revenue guidance exceeding analysts’ expectations.

Vertiv achieved the fastest revenue growth and highest full-year guidance raise among its peers. The stock is up 74.2% since reporting and currently trades at $125.

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

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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