As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at electronic components stocks, starting with nLIGHT (NASDAQ:LASR).
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.
Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data, and electronic components stocks have had a rough stretch. On average, share prices are down 6.5% since the latest earnings results.
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 $50.51 million, down 5.2% year on year. This print exceeded analysts’ expectations by 2.7%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ earnings and operating margin estimates.
“Second quarter revenue of $50.5 million was at the upper end of our guidance range and increased 13% compared to the first quarter,” commented Scott Keeney, nLIGHT’s President & Chief Executive Officer.
The stock is down 4.1% since reporting and currently trades at $10.76.
Is now the time to buy nLIGHT? 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 6.4% since reporting. It currently trades at $87.34.
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 20.8% since the results and currently trades at $18.86.
Read our full analysis of Allient’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 $558.5 million, down 8.7% year on year. This print surpassed analysts’ expectations by 3.4%. It was a very strong quarter as it also logged an impressive beat of analysts’ operating margin estimates and a decent beat of analysts’ earnings estimates.
The stock is down 5.8% since reporting and currently trades at $243.95.
Read our full, actionable report on Littelfuse here, it’s free.
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 $235.9 million, up 2.8% year on year. This print met analysts’ expectations. However, it was a weak quarter as it logged a miss of analysts’ earnings estimates. In addition, full-year revenue guidance missed analysts’ expectations.
The stock is up 7.2% since reporting and currently trades at $167.75.
Read our full, actionable report on Novanta here, it’s free.
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