As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the electronic components industry, including nLIGHT (NASDAQ:LASR) 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. 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 16.7% on average since the previous earnings results.
nLIGHT (NASDAQ:LASR) Founded by a former CEO and Harvard-educated entrepreneur Scott Keeneyn, nLIGHT (NASDAQGS:LASR) offers semiconductor and fiber lasers to the industrial, aerospace & defense, and medical sectors.
nLIGHT reported revenues of $44.53 million, down 17.7% year on year, in line with analysts' expectations. Overall, it was a weaker quarter for the company with a miss of analysts' earnings estimates.
“With total revenue of $44.5 million, Q1 results were within the range of our guidance, and we continue to believe that Q1 is our trough revenue quarter,” commented Scott Keeney, nLIGHT’s President and Chief Executive Officer.
The stock is up 6.3% since reporting and currently trades at $12.31.
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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 44.3% since reporting. It currently trades at $45.88.
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 revenue estimates.
Advanced Energy posted the weakest performance against analyst estimates in the group. Interestingly, the stock is up 19.9% since the results and currently trades at $115.01.
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%. Revenue aside, it was a very strong quarter for the company with an impressive beat of analysts' earnings estimates.
The stock is up 7.6% since reporting and currently trades at $173.23.
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. Revenue aside, 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 17.5% since reporting and currently trades at $84.01.
This content was originally published on Stock Story
