As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the electronic components industry, including Littelfuse (NASDAQ:LFUS) and its peers.
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. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, but electronic components stocks have performed well, with the share prices up 18.8% on average since the previous earnings results.
Littelfuse (NASDAQ:LFUS) The developer of the first blade-type automotive fuse, Littelfuse (NASDAQGS:LFUS) provides electrical protection and control components for the automotive, industrial, electronics, and telecommunications industries.
Littelfuse reported revenues of $535.4 million, down 12.2% year on year, exceeding analysts' expectations by 3.2%. Overall, it was a very strong quarter for the company with an impressive beat of analysts' Electronics revenue estimates and strong earnings guidance for the next quarter.
“Our global team delivered solid first quarter results, with sales above and earnings in-line with our expectations, as our increasingly diversified end market exposures, robust technology offering, and portfolio optimization initiatives helped to offset ongoing inventory destocking,” said Dave Heinzmann, Littelfuse President and Chief Executive Officer.
The stock is up 14.5% since reporting and currently trades at $263.32.
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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 scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 44.2% since reporting. It currently trades at $45.85.
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 and a miss of analysts' Semiconductor Equipment revenue estimates.
Advanced Energy posted the weakest performance against analyst estimates in the group. Interestingly, the stock is up 19.6% since the results and currently trades at $114.70.
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, surpassing analysts' expectations by 1.3%. Zooming out, it was an impressive quarter for the company with an impressive beat of analysts' earnings estimates.
The stock is up 13.2% since reporting and currently trades at $182.13.
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 $83.87 million, down 14.3% year on year, falling short of analysts' expectations by 1.1%. More broadly, it was a weak quarter for the company with a miss of analysts' earnings estimates.
The stock is up 9% since reporting and currently trades at $38.36.
This content was originally published on Stock Story
