Let's dig into the relative performance of Bel Fuse (NASDAQ:BELFA) and its peers as we unravel the now-completed Q1 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 decent Q1; on average, revenues beat analyst consensus estimates by 0.8%. while next quarter's revenue guidance was in line with consensus. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, but electronic components stocks have performed well, with the share prices up 16.1% on average since the previous earnings results.
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. Overall, it was a decent quarter for the company with an impressive beat of analysts' earnings estimates.
“We are pleased with our Q1 results, achieving a higher than anticipated level of profitability on a lower sales volume from Q1-23, which was within our expected range,” said Daniel Bernstein, President and CEO.
Bel Fuse delivered the slowest revenue growth of the whole group. The stock is up 13.9% since reporting and currently trades at $81.40.
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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 pulled off the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 42% since reporting. It currently trades at $45.17.
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 Semiconductor Equipment revenue estimates.
Advanced Energy posted the weakest performance against analyst estimates in the group. Interestingly, the stock is up 16.8% since the results and currently trades at $112.05.
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%. Revenue aside, it was a solid quarter for the company.
The stock is up 17% since reporting and currently trades at $128.31.
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. Revenue aside, it was a weak quarter for the company with a miss of analysts' earnings estimates.
Knowles delivered the fastest revenue growth among its peers. The stock is up 18% since reporting and currently trades at $18.64.
This content was originally published on Stock Story
