As the Q2 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 Advanced Energy (NASDAQ:AEIS) 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 12 electronic components stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was 1.7% below.
The Fed cut its policy rate by 50bps (half a percent) in September 2024, the first in roughly four years. This marks the end of its most pointed inflation-busting campaign since the 1980s. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be assessing whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.
Electronic components stocks have held steady amidst all this with average share prices relatively unchanged 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 $364.9 million, down 12.2% year on year. This print exceeded analysts’ expectations by 4.1%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ operating margin and earnings estimates.
“Second quarter financial results exceeded expectations, with sequential revenue growth in three of our four markets,” said Steve Kelley, president and CEO of Advanced Energy.
The stock is down 8.1% since reporting and currently trades at $99.62.
Is now the time to buy Advanced Energy? Access our full analysis of the earnings results 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 $133.2 million, down 21.1% year on year, outperforming analysts’ expectations by 2.3%. The business had a stunning quarter with an impressive beat of analysts’ earnings estimates.
The market seems happy with the results as the stock is up 24.3% since reporting. It currently trades at $102.
Is now the time to buy Bel Fuse? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Allient (NASDAQ:ALNT)
Founded in 1962, Allient (NASDAQ:ALNT) develops and manufactures precision and specialty-controlled motion components and systems.
Allient reported revenues of $136 million, down 7.3% year on year, falling short of analysts’ expectations by 2.6%. It was a disappointing quarter as it posted a miss of analysts’ earnings estimates.
As expected, the stock is down 14.9% since the results and currently trades at $20.26.
Read our full analysis of Allient’s results here.
Knowles (NYSE:KN)
Holding a swath of patents, Knowles (NYSSE:KN) offers acoustics components for various industries.
Knowles reported revenues of $204.7 million, up 18.3% year on year. This number was in line with analysts’ expectations. Aside from that, it was a mixed quarter as it recorded a miss of analysts’ earnings estimates.
Knowles pulled off the fastest revenue growth among its peers. The stock is down 4.2% since reporting and currently trades at $17.52.
Read our full, actionable report on Knowles here, it’s free.
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 $77.36 million, down 14.8% year on year. This print lagged analysts' expectations by 2.8%. It was a softer quarter as it also produced revenue guidance for next quarter missing analysts’ expectations.
Vishay Precision had the weakest performance against analyst estimates among its peers. The stock is down 22.8% since reporting and currently trades at $24.25.
Read our full, actionable report on Vishay Precision here, it’s free.
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