Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Knowles (NYSE:KN) and the best and worst performers in the electronic components industry.
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.
Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. On the other hand, 2024 has been a bumpier ride as the market switches between optimism and pessimism around rate cuts and inflation, and electronic components stocks have had a rough stretch. On average, share prices are down 6.6% since the latest earnings results.
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. This print was in line with analysts' expectations, but overall, it was a weaker quarter for the company with a miss of analysts' earnings estimates.
“We closed the second quarter of 2024 with revenues, Non-GAAP diluted earnings per share, and net cash from operating activities in line with our expectations and at the mid-point of our guided range. Our revenues grew from the prior year by 18% while our generation of net cash from operations remained strong allowing us to repurchase shares while reducing debt levels in the quarter,” commented Jeffrey Niew, President and CEO of Knowles.
Knowles scored the fastest revenue growth of the whole group. Even though it had a great quarter relative to its peers, the market seems discontent with the results. The stock is down 4.5% since reporting and currently trades at $78.37.
Is now the time to buy Knowles? Find out by reading the original article on StockStory, it's free. 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.
Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 4.5% since reporting. It currently trades at $78.37.
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 17.1% since the results and currently trades at $101.74.
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, surpassing analysts' expectations by 3.4%. More broadly, it was a solid quarter for the company with a decent beat of analysts' earnings estimates and strong earnings guidance for the next quarter.
The stock is down 6.7% since reporting and currently trades at $241.50.
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, surpassing analysts' expectations by 5%. Revenue aside, it was a mixed quarter for the company.
The stock is down 5.9% since reporting and currently trades at $35.74.
This content was originally published on Stock Story
