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 Bel Fuse (NASDAQ:BELFA).
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 10 electronic components stocks we track reported a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 4.8% while next quarter’s revenue guidance was in line.
Luckily, electronic components stocks have performed well with share prices up 13.1% on average 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 (NASDAQ:BELF.A) provides electronic systems and devices to the telecommunications, networking, transportation, and industrial sectors.
Bel Fuse reported revenues of $168.3 million, up 26.3% year on year. This print exceeded analysts’ expectations by 10.1%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Bel Fuse achieved the fastest revenue growth of the whole group. Unsurprisingly, the stock is up 23.1% since reporting and currently trades at $113.81.
Is now the time to buy Bel Fuse? Access our full analysis of the earnings results here, it’s free.
Allient (NASDAQ:ALNT)
Founded in 1962, Allient (NASDAQ:ALNT) develops and manufactures precision and specialty-controlled motion components and systems.
Allient reported revenues of $139.6 million, up 2.6% year on year, outperforming analysts’ expectations by 5%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 12.9% since reporting. It currently trades at $45.38.
Is now the time to buy Allient? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: Novanta (NASDAQ:NOVT)
Originally a pioneer in the laser scanning industry during the late 1960s, Novanta (NASDAQ:NOVT) offers medicine and manufacturing technology to the medical, life sciences, and manufacturing industries.
Novanta reported revenues of $241 million, up 2.2% year on year, exceeding analysts’ expectations by 1.3%. Still, it was a slower quarter as it posted EBITDA guidance for next quarter missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations.
As expected, the stock is down 6.3% since the results and currently trades at $116.41.
Read our full analysis of Novanta’s results here.
Corning (NYSE:GLW)
Supplying windows for some of the United States’s earliest spacecraft, Corning (NYSE:GLW) provides glass and other electronic components for the consumer electronics, telecommunications, automotive, and healthcare industries.
Corning reported revenues of $4.05 billion, up 24.4% year on year. This number topped analysts’ expectations by 4.6%. Overall, it was a very strong quarter as it also recorded a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.
The stock is up 21.6% since reporting and currently trades at $67.43.
Read our full, actionable report on Corning here, it’s free.
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 $672 million, up 11.2% year on year. This print surpassed analysts’ expectations by 2.1%. It was a strong quarter as it also logged an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ Industrial revenue estimates.
The stock is down 1.8% since reporting and currently trades at $125.64.
Read our full, actionable report on Belden here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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