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Reflecting On Electronic Components Stocks’ Q1 Earnings: Novanta (NASDAQ:NOVT)


Max Juang /
2024/07/11 7:28 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 Novanta (NASDAQ:NOVT) 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 those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, but electronic components stocks have performed well, with the share prices up 11.1% on average since the previous earnings results.

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, exceeding analysts' expectations by 1.3%. Overall, it was a strong quarter for the company with an impressive beat of analysts' earnings estimates.

“Novanta achieved great results for the first quarter, beating expectations for sales, profit, and cash flow,” said Matthijs Glastra, Chair and Chief Executive Officer of Novanta.

Novanta Total Revenue

The stock is down 1.1% since reporting and currently trades at $159.14.

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

Best Q1: Corning (NYSE:GLW)

Supplying windows for some of the United States’s earliest spacecraft, Corning (NYSE:GLW) provides glass and other electronic components for the consumer electronics, telecommunications, automotive, and healthcare industries.

Corning reported revenues of $3.26 billion, down 3.2% year on year, outperforming analysts' expectations by 4.6%. It was a stunning quarter for the company with an impressive beat of analysts' Display Technologies revenue estimates and a decent beat of analysts' earnings estimates.

Corning Total Revenue

Corning pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 43.2% since reporting. It currently trades at $45.55.

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

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 estimates.

Advanced Energy had the weakest performance against analyst estimates in the group. Interestingly, the stock is up 15.8% since the results and currently trades at $111.08.

Read our full analysis of Advanced Energy's results here.

Rogers (NYSE:ROG)

With its silicone foam used in Apollo 11’s mission to the moon, Rogers (NYSE:ROG) produces advanced materials for the telecommunications, automotive, and electronics industries.

Rogers reported revenues of $213.4 million, down 12.5% year on year, surpassing analysts' expectations by 1.6%. Looking more broadly, it was a solid quarter for the company.

The stock is up 9% since reporting and currently trades at $119.5.

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

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, in line with analysts' expectations. Looking more broadly, it was a strong quarter for the company with an impressive beat of analysts' earnings estimates.

Bel Fuse had the slowest revenue growth among its peers. The stock is up 14.2% since reporting and currently trades at $81.66.

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

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