As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q2. Today, we are looking at electronic components stocks, starting with Rogers (NYSE:ROG).
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.
Big picture, the Federal Reserve has a dual mandate of inflation and employment. The former had been running hot throughout 2021 and 2022 but cooled towards the central bank's 2% target as of late. This prompted the Fed to cut its policy rate by 50bps (half a percent) in September 2024. Given recent employment data that suggests the US economy could be wobbling, the markets will be assessing whether this rate and future cuts (the Fed signaled more to come in 2024 and 2025) are the right moves at the right time or whether they're too little, too late for a macro that has already cooled.
Electronic Components stocks have held steady amidst all this with average share prices relatively unchanged since the latest earnings results.
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. This print was in line with analysts’ expectations, but overall, it was a softer quarter for the company with a miss of analysts’ earnings estimates and revenue guidance for next quarter missing analysts’ expectations.
Unsurprisingly, the stock is down 10.8% since reporting and currently trades at $109.43.
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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%. The business had a stunning quarter with an impressive beat of analysts’ earnings estimates.
The market seems happy with the results as the stock is up 24.9% since reporting. It currently trades at $102.50.
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 disappointing quarter as it posted a miss of analysts’ earnings estimates.
As expected, the stock is down 23.1% since the results and currently trades at $18.31.
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. This result topped analysts’ expectations by 5.3%. Overall, it was an exceptional quarter as it also logged an impressive beat of analysts’ operating margin estimates.
Belden achieved the biggest analyst estimates beat among its peers. The stock is up 25.5% since reporting and currently trades at $116.10.
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. This number missed analysts’ expectations by 2.8%. Overall, it was a softer quarter as it also recorded revenue guidance for next quarter missing analysts’ expectations.
Vishay Precision had the weakest performance against analyst estimates among its peers. The stock is down 20.4% since reporting and currently trades at $25.
This content was originally published on Stock Story
