Looking back on electronic components stocks' Q2 earnings, we examine this quarter's best and worst performers, including Vicor (NASDAQ:VICR) 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 12 electronic components stocks we track reported a mixed Q2; on average, revenues beat analyst consensus estimates by 1.5%. while next quarter's revenue guidance was 1.7% below 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. 2024 has been a different story as mixed signals have led to market volatility, and electronic components stocks have had a rough stretch, with share prices down 5.2% on average since the previous earnings results.
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 $85.85 million, down 19.6% year on year, exceeding analysts' expectations by 5%. Overall, it was a mixed quarter for the company.
Commenting on second quarter performance, Chief Executive Officer Dr. Patrizio Vinciarelli stated: “Backlog, revenues and cash flow improved in Q2 while gross margins and profitability were impacted by changes in product mix and taxes.”
The stock is flat since reporting and currently trades at $37.94.
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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 (NASDAQGS: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 stock is flat since reporting and currently trades at $82.87.
Weakest Q2: 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 $214.2 million, down 7.2% year on year, in line with analysts' expectations. It was a weak quarter for the company with a miss of analysts' earnings estimates and revenue guidance for next quarter missing analysts' expectations.
As expected, the stock is down 13.9% since the results and currently trades at $105.62.
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 $604.3 million, down 12.7% year on year, surpassing analysts' expectations by 5.3%. More broadly, it was a strong quarter for the company with an impressive beat of analysts' Enterprise revenue estimates and a decent beat of analysts' earnings estimates.
Belden pulled off the biggest analyst estimates beat among its peers. The stock is up 2.4% since reporting and currently trades at $94.79.
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 $235.9 million, up 2.8% year on year, in line with analysts' expectations. Taking a step back, it was a weak quarter for the company with a miss of analysts' earnings estimates and full-year revenue guidance missing analysts' expectations.
The stock is up 11.3% since reporting and currently trades at $174.11.
This content was originally published on Stock Story
