Let’s dig into the relative performance of Advanced Energy (NASDAQ:AEIS) and its peers as we unravel the now-completed Q3 electronic components earnings season.
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 very strong Q3. As a group, revenues beat analysts’ consensus estimates by 4.2% while next quarter’s revenue guidance was in line.
Thankfully, share prices of the companies have been resilient as they are up 9.1% on average 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 $463.3 million, up 23.8% year on year. This print exceeded analysts’ expectations by 5%. Overall, it was a stunning quarter for the company with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.
Interestingly, the stock is up 13.4% since reporting and currently trades at $221.19.
Is now the time to buy Advanced Energy? Access our full analysis of the earnings results here, it’s free for active Edge members.
Best Q3: Vicor (NASDAQ:VICR)
Founded by a researcher at the Massachusetts Institute of Technology, Vicor (NASDAQ:VICR) provides electrical power conversion and delivery products for a range of industries.
Vicor reported revenues of $110.4 million, up 18.5% year on year, outperforming analysts’ expectations by 15.7%. The business had an incredible quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Vicor pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 51.8% since reporting. It currently trades at $99.89.
Is now the time to buy Vicor? Access our full analysis of the earnings results here, it’s free for active Edge members.
Weakest Q3: 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 $247.8 million, up 1.4% year on year, exceeding analysts’ expectations by 0.8%. Still, it was a slower quarter as it posted a significant miss of analysts’ EBITDA estimates.
Novanta delivered the slowest revenue growth in the group. As expected, the stock is down 14.1% since the results and currently trades at $116.70.
Read our full analysis of Novanta’s results here.
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 $66.74 million, up 18.9% year on year. This result surpassed analysts’ expectations by 5.4%. It was an incredible quarter as it also put up EBITDA guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
The stock is up 27.3% since reporting and currently trades at $37.91.
Read our full, actionable report on nLIGHT here, it’s free for active Edge members.
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 $179 million, up 44.8% year on year. This print beat analysts’ expectations by 3.7%. Overall, it was an incredible quarter as it also produced a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Bel Fuse scored the fastest revenue growth among its peers. The stock is up 7.6% since reporting and currently trades at $145.97.
Read our full, actionable report on Bel Fuse here, it’s free for active Edge members.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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