As the Q2 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the electronic components industry, including Bel Fuse (NASDAQ:BELFA) 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. 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 1.5% since the latest earnings results.
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. This print exceeded analysts’ expectations by 2.3%. Overall, it was a stunning quarter for the company with an impressive beat of analysts’ earnings estimates.
“We are pleased with our second quarter results, with sales achieving the higher end of our guidance coupled with continued margin improvement,” said Daniel Bernstein, President and CEO.
Bel Fuse delivered the slowest revenue growth of the whole group. Interestingly, the stock is up 2.7% since reporting and currently trades at $84.27.
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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, outperforming analysts’ expectations by 5.3%. 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 market seems happy with the results as the stock is up 8.5% since reporting. It currently trades at $100.42.
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 11% since the results and currently trades at $21.20.
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 11.5% since reporting and currently trades at $27.82.
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 $364.9 million, down 12.2% year on year, surpassing analysts’ expectations by 4.1%. Taking a step back, it was a mixed quarter for the company with in-line earnings guidance for the next quarter but a miss of analysts’ earnings estimates.
The stock is flat since reporting and currently trades at $108.04.
This content was originally published on Stock Story
