Let's dig into the relative performance of Belden (NYSE:BDC) 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. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, but electronic components stocks have performed well, with the share prices up 10.2% on average since the previous earnings results.
Best Q1: Belden (NYSE:BDC) With its enamel-coated copper wire used in WWI for the Allied forces, Belden (NYSE:BDC) designs, manufactures, and sells electronic components to various industries.
Belden reported revenues of $535.7 million, down 16.5% year on year, exceeding analysts' expectations by 4.3%. Overall, it was a very good quarter for the company with an impressive beat of analysts' Enterprise revenue estimates and a solid beat of analysts' earnings estimates.
“Stability once again is the key takeaway this quarter, with our teams delivering first quarter revenues and EPS exceeding expectations,” said Ashish Chand, President and CEO of
The stock is up 13.1% since reporting and currently trades at $92.
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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. It was a strong quarter for the company with an impressive beat of analysts' earnings estimates.
The market seems happy with the results as the stock is up 15.4% since reporting. It currently trades at $82.47.
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 had the weakest performance against analyst estimates in the group. Interestingly, the stock is up 11.7% since the results and currently trades at $107.13.
Vicor (NASDAQ:VICR) Founded by a researcher at MIT, 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%. Looking more broadly, it was a weak quarter for the company with a miss of analysts' earnings estimates.
The stock is down 4.3% since reporting and currently trades at $33.68.
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%. Looking more broadly, it was a mixed quarter for the company. On the other hand, its operating margin missed.
The stock is up 7.5% since reporting and currently trades at $117.83.
This content was originally published on Stock Story
