The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how electronic components stocks fared in Q2, starting with Vicor (NASDAQ:VICR).
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 very strong Q2. As a group, revenues beat analysts’ consensus estimates by 4.8% while next quarter’s revenue guidance was in line.
Thankfully, share prices of the companies have been resilient as they are up 8.2% on average since the latest earnings results.
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 $96.05 million, up 11.9% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a solid beat of analysts’ EPS estimates but a significant miss of analysts’ EBITDA estimates.
Commenting on second quarter performance, Chief Executive Officer Dr. Patrizio Vinciarelli stated: “Having brought to fruition our first ITC action with cease-and-desist and exclusion orders, we are pursuing additional actions to curtail importation into the US of infringing power and computing systems sourced from contract manufacturers by unlicensed OEMs and Hyper-scalers.”
Vicor delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 2.5% since reporting and currently trades at $46.28.
Read our full report on Vicor here, it’s free.
Best Q2: 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 $168.3 million, up 26.3% year on year, outperforming analysts’ expectations by 10.1%. The business had an incredible quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Bel Fuse scored the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 24.4% since reporting. It currently trades at $115.
Is now the time to buy Bel Fuse? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $241 million, up 2.2% year on year, exceeding analysts’ expectations by 1.3%. Still, it was a slower quarter as it posted EBITDA guidance for next quarter missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations.
As expected, the stock is down 8.9% since the results and currently trades at $113.14.
Read our full analysis of Novanta’s results here.
Littelfuse (NASDAQ:LFUS)
The developer of the first blade-type automotive fuse, Littelfuse (NASDAQ:LFUS) provides electrical protection and control components for the automotive, industrial, electronics, and telecommunications industries.
Littelfuse reported revenues of $613.4 million, up 9.8% year on year. This print surpassed analysts’ expectations by 6.8%. Overall, it was an exceptional quarter as it also put up EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.
The stock is up 4.1% since reporting and currently trades at $245.41.
Read our full, actionable report on Littelfuse here, it’s free.
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 $61.74 million, up 22.2% year on year. This number topped analysts’ expectations by 11%. It was a stunning quarter as it also produced EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EPS estimates.
nLIGHT pulled off the biggest analyst estimates beat among its peers. The stock is up 31.4% since reporting and currently trades at $26.88.
Read our full, actionable report on nLIGHT 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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