The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how electronic components stocks fared in Q2, starting with Corning (NYSE:GLW).
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 12 electronic components stocks we track reported a mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was 1.7% below.
Stocks, especially growth stocks with cash flows further into the future, had a good end of 2023. On the other hand, this year has seen more volatile stock market swings due to mixed inflation data, and while some electronic components stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.5% since the latest earnings results.
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 $3.60 billion, up 3.5% year on year. This print was in line with analysts’ expectations, and overall, it was a strong quarter for the company with an impressive beat of analysts’ operating margin estimates and a solid beat of analysts’ Display Technologies revenue estimates.
Wendell P. Weeks, chairman and chief executive officer, said, “Our strong second-quarter results exceeded the guidance we provided in April and marked a return to year-over-year core sales and EPS growth. The outperformance was driven primarily by the strong adoption of our new optical connectivity products for generative AI, which drove record sales in the Enterprise portion of our Optical Communications business. The opportunity is only growing; in fact, in the third quarter, we reached an agreement with Lumen Technologies that uses our new gen-AI fiber and cable system to facilitate Lumen’s build of a new network to interconnect AI-enabled data centers.”
The stock is down 2.9% since reporting and currently trades at $41.43.
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Best Q2: 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 $133.2 million, down 21.1% year on year, outperforming analysts’ expectations by 2.3%. It was a stunning quarter for the company with an impressive beat of analysts’ earnings estimates.
The market seems content with the results as the stock is up 4.8% since reporting. It currently trades at $86.
Weakest Q2: Allient (NASDAQ:ALNT) Founded in 1962, Allient (NASDAQ:ALNT) develops and manufactures precision and specialty-controlled motion components and systems.
Allient reported revenues of $136 million, down 7.3% year on year, falling short of analysts’ expectations by 2.6%. It was a weak quarter for the company with a miss of analysts’ earnings estimates.
As expected, the stock is down 13.9% since the results and currently trades at $20.51.
Knowles (NYSE:KN) Holding a swath of patents, Knowles (NYSSE:KN) offers acoustics components for various industries.
Knowles reported revenues of $204.7 million, up 18.3% year on year, in line with analysts’ expectations. Zooming out, it was a weaker quarter for the company with a miss of analysts’ earnings estimates.
Knowles achieved the fastest revenue growth among its peers. The stock is down 5.7% since reporting and currently trades at $17.24.
Vishay Precision (NYSE:VPG) Emerging from Vishay Intertechnology (NYSE:VSH) in 2010, Vishay Precision (NYSE:VPG) operates as a global provider of precision measurement and sensing technologies.
Vishay Precision reported revenues of $77.36 million, down 14.8% year on year, falling short of analysts’ expectations by 2.8%. Overall, it was a weak quarter for the company with revenue guidance for next quarter missing analysts’ expectations.
Vishay Precision had the weakest performance against analyst estimates among its peers. The stock is down 18.2% since reporting and currently trades at $25.71.
This content was originally published on Stock Story
