Let’s dig into the relative performance of Advanced Energy (NASDAQ: AEIS) and its peers as we unravel the now-completed Q1 electronic components earnings season.
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 1.9% while next quarter’s revenue guidance was in line.
Luckily, electronic components stocks have performed well with share prices up 19% on average since the latest earnings results.
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 $404.6 million, up 23.6% year on year. This print exceeded analysts’ expectations by 3.7%. Overall, it was an exceptional quarter for the company with EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.
“First quarter results were at the higher end of our guidance, highlighting growth in our new data center programs and continued strength in semiconductor,” said Steve Kelley, president and CEO of Advanced Energy.
Advanced Energy pulled off the fastest revenue growth of the whole group. The stock is up 22.1% since reporting and currently trades at $119.05.
Is now the time to buy Advanced Energy? Access our full analysis of the earnings results 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 an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 42.3% since reporting. It currently trades at $31.57.
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 15.6% since the results and currently trades at $43.87.
Read our full analysis of Vicor’s results here.
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 $233.4 million, up 1.1% year on year. This result met analysts’ expectations. Zooming out, it was a mixed quarter as it also recorded a decent beat of analysts’ EPS estimates but revenue guidance for next quarter missing analysts’ expectations.
The stock is up 7.1% since reporting and currently trades at $128.23.
Read our full, actionable report on Novanta 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 $624.9 million, up 16.6% year on year. This number beat analysts’ expectations by 1.8%. Overall, it was a very strong quarter as it also produced a solid beat of analysts’ adjusted operating income estimates.
The stock is up 5.1% since reporting and currently trades at $108.37.
Read our full, actionable report on Belden 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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