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Unpacking Q1 Earnings: Advanced Energy (NASDAQ:AEIS) In The Context Of Other Electronic Components Stocks


Radek Strnad /
2024/07/08 3:39 am EDT

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Advanced Energy (NASDAQ:AEIS) and the rest of the electronic components stocks fared in Q1.

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 decent Q1; on average, revenues beat analyst consensus estimates by 0.8%. while next quarter's revenue guidance was in line with consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, but electronic components stocks have shown resilience, with share prices up 6.4% on average since the previous earnings results.

Weakest Q1: Advanced Energy (NASDAQ:AEIS)

Pioneering technologies for radio frequency power delivery, Advanced Energy (NASDAQGS:AEIS) provides power supplies, thermal management systems, and measurement and control instruments for various manufacturing processes.

Advanced Energy reported revenues of $327.5 million, down 23% year on year, falling short of analysts' expectations by 6.9%. It was a weak quarter for the company, with a miss of analysts' earnings and revenue estimates.

“Early signs of improving demand give us confidence that the first quarter was a trough for the year and that through the remainder of 2024, revenue will improve with meaningfully higher profitability driven by our actions to expand gross margins and control spending,” said Steve Kelley, president and CEO of Advanced Energy.

Advanced Energy Total Revenue

Advanced Energy delivered the weakest performance against analyst estimates of the whole group. The stock is up 11.5% since the results and currently trades at $106.95.

Read our full report on Advanced Energy here, it's free.

Best Q1: Bel Fuse (NASDAQ:BELFA)

Founded by 26-year-old Elliot Bernstein during the electronics boom after WW2, Bel Fuse (NASDAQGS:BELF.A) provides electronic systems and devices to the telecommunications, networking, transportation, and industrial sectors.

Bel Fuse reported revenues of $128.1 million, down 25.7% year on year, falling short of analysts' expectations by 0.4%. It was a decent quarter for the company, with EPS outperforming analysts' expectations.

Bel Fuse Total Revenue

Bel Fuse had the slowest revenue growth among its peers. The stock is up 17.7% since the results and currently trades at $84.11.

Is now the time to buy Bel Fuse? Access our full analysis of the earnings results here, it's free.

Vicor (NASDAQ:VICR)

Founded by a researcher at MIT, Vicor (NASDAQ:VICR) provides electrical power conversion and delivery products for a range of industries.

Vicor reported revenues of $83.87 million, down 14.3% year on year, falling short of analysts' expectations by 1.1%. It was a weak quarter for the company, with a miss of analysts' revenue and EPS estimates.

The stock is down 4.9% since the results and currently trades at $33.44.

Read our full analysis of Vicor's results here.

Knowles (NYSE:KN)

Holding a swath of patents, Knowles (NYSSE:KN) offers acoustics components for various industries.

Knowles reported revenues of $196.4 million, up 36.1% year on year, in line with analysts' expectations. It was a weak quarter for the company, with EPS falling below analysts' expectations.

Knowles achieved the fastest revenue growth among its peers. The stock is up 7.7% since the results and currently trades at $17.

Read our full, actionable report on Knowles here, it's free.

Novanta (NASDAQ:NOVT)

Originally a pioneer in the laser scanning industry during the late 1960s, Novanta (NASDAQGS:NOVT) offers medicine and manufacturing technology to the medical, life sciences, and manufacturing industries.

Novanta reported revenues of $230.9 million, up 5.4% year on year, surpassing analysts' expectations by 1.3%. It was an impressive quarter for the company with revenue and EPS exceeding expectations.

The stock is down 1% since the results and currently trades at $159.4.

Read our full, actionable report on Novanta here, it's free.

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