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 Q1. Today, we are looking at electrical systems stocks, starting with Encore Wire (NASDAQ:WIRE).
Like many equipment and component manufacturers, electrical systems companies are buoyed by secular trends such as connectivity and industrial automation. More specific pockets of strong demand include Internet of Things (IoT) connectivity and the 5G telecom upgrade cycle, which can benefit companies whose cables and conduits fit those needs. But like the broader industrials sector, these companies are also at the whim of economic cycles. Interest rates, for example, can greatly impact projects that drive demand for these products.
The 12 electrical systems stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 0.6%. while next quarter's revenue guidance was 101% below 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, and electrical systems stocks have held roughly steady amidst all this, with share prices up 1.5% on average since the previous earnings results.
Best Q1: Encore Wire (NASDAQ:WIRE)
Started in a small warehouse in Texas in 1989, Encore Wire (NASDAQ:WIRE) manufactures a range of electrical building wire and cables.
Encore Wire reported revenues of $632.7 million, down 4.2% year on year, exceeding analysts' expectations by 7.3%. Overall, it was an impressive quarter for the company with a decent beat of analysts' earnings estimates.
Encore Wire achieved the biggest analyst estimates beat of the whole group. The stock is up 2.2% since reporting and currently trades at $289.95.
Is now the time to buy Encore Wire? Access our full analysis of the earnings results here, it's free.
Verra Mobility (NASDAQ:VRRM)
Managing over 165 million tolling transactions per year, Verra Mobility (NYSE: VRRM) is a leading provider of smart mobility technology that enhances safety, efficiency, and convenience on roadways.
Verra Mobility reported revenues of $209.7 million, up 9.3% year on year, outperforming analysts' expectations by 3.3%. It was a very strong quarter for the company with a decent beat of analysts' earnings estimates.
The market seems happy with the results as the stock is up 23.4% since reporting. It currently trades at $29.72.
Is now the time to buy Verra Mobility? Access our full analysis of the earnings results here, it's free.
Weakest Q1: Identiv (NASDAQ:INVE)
Emerging from bankruptcy and rebranding in 2013, Identiv (NASDAQCM:INVE) provides digital identity and security solutions for various industries.
Identiv reported revenues of $22.49 million, down 13.5% year on year, falling short of analysts' expectations by 2.2%. It was a weak quarter for the company with a miss of analysts' earnings estimates.
As expected, the stock is down 19% since the results and currently trades at $4.09.
Read our full analysis of Identiv's results here.
Whirlpool (NYSE:WHR)
Credited with introducing the first automatic washing machine, Whirlpool (NYSE:WHR) is a manufacturer of a variety of home appliances.
Whirlpool reported revenues of $4.49 billion, down 3.4% year on year, surpassing analysts' expectations by 1.7%. Taking a step back, it was a very strong quarter for the company with an impressive beat of analysts' volume estimates and a decent beat of analysts' earnings estimates.
Whirlpool delivered the highest full-year guidance raise among its peers. The stock is flat since reporting and currently trades at $105.55.
Read our full, actionable report on Whirlpool here, it's free.
Hubbell (NYSE:HUBB)
A respected player in the electrical segment, Hubbell (NYSE:HUBB) manufactures electronic products for the construction, industrial, utility, and telecommunications markets.
Hubbell reported revenues of $1.40 billion, up 8.8% year on year, surpassing analysts' expectations by 1.4%. Taking a step back, it was an ok quarter for the company with a narrow beat of analysts' earnings estimates.
The stock is down 9.5% since reporting and currently trades at $368.78.
Read our full, actionable report on Hubbell here, it's free.
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