Wrapping up Q2 earnings, we look at the numbers and key takeaways for the electronic components stocks, including Littelfuse (NASDAQ:LFUS) 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 those trading at higher multiples--had a strong end of 2023, but this year has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and while some electronic components stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 1.4% since the latest earnings results.
Littelfuse (NASDAQ:LFUS) The developer of the first blade-type automotive fuse, Littelfuse (NASDAQGS:LFUS) provides electrical protection and control components for the automotive, industrial, electronics, and telecommunications industries.
Littelfuse reported revenues of $558.5 million, down 8.7% year on year. This print exceeded analysts’ expectations by 3.4%. Overall, it was a very strong quarter for the company with a decent beat of analysts’ earnings estimates.
“We are pleased to have exceeded the high end of our second quarter sales and adjusted EPS guidance ranges, driven by solid execution from our global teams and supported by our resilient business model and diverse technology positioning. ” said Dave Heinzmann, Littelfuse President and Chief Executive Officer.
Interestingly, the stock is up 4% since reporting and currently trades at $269.26.
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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 market seems content with the results as the stock is up 2.2% since reporting. It currently trades at $83.90.
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 13.3% since the results and currently trades at $20.66.
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%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ Enterprise revenue estimates.
Belden delivered the biggest analyst estimates beat among its peers. The stock is up 12.4% since reporting and currently trades at $104.
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 $50.51 million, down 5.2% year on year, surpassing analysts’ expectations by 2.7%. Taking a step back, it was a strong quarter for the company with a solid beat of analysts’ Advanced Developments revenue estimates.
The stock is up 2.6% since reporting and currently trades at $11.51.
This content was originally published on Stock Story
