As the Q3 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 Knowles (NYSE:KN) 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 strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was 3.4% below.
In light of this news, share prices of the companies have held steady as they are up 3.2% on average 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 $142.5 million, down 18.6% year on year. This print exceeded analysts’ expectations by 1.1%. Overall, it was a strong quarter for the company with a decent beat of analysts’ EBITDA estimates and strong earnings guidance for the next quarter.
“I am pleased that we delivered revenues from continuing operations and cash provided by operating activities at or above the high end of our guided range, with non-GAAP diluted EPS from continuing operations at the mid-point of our guided range,” commented Jeffrey Niew, President, and CEO of Knowles.
Interestingly, the stock is up 8.5% since reporting and currently trades at $18.68.
Is now the time to buy Knowles? Access our full analysis of the earnings results here, it’s free.
Best Q3: 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 $93.17 million, down 13.6% year on year, outperforming analysts’ expectations by 9.3%. The business had an incredible quarter with an impressive beat of analysts’ earnings estimates.
Vicor scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 37% since reporting. It currently trades at $59.45.
Is now the time to buy Vicor? Access our full analysis of the earnings results here, it’s free.
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 $244.4 million, up 10.3% year on year, in line with analysts’ expectations. It was a softer quarter as it posted underwhelming EBITDA guidance for the full year.
The stock is flat since the results and currently trades at $174.71.
Read our full analysis of Novanta’s results here.
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 $123.6 million, down 22.1% year on year. This number was in line with analysts’ expectations. It was a strong quarter as it also recorded an impressive beat of analysts’ earnings estimates and a decent beat of analysts’ EBITDA estimates.
Bel Fuse had the slowest revenue growth among its peers. The stock is down 4.1% since reporting and currently trades at $98.77.
Read our full, actionable report on Bel Fuse 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 $125.2 million, down 13.8% year on year. This number met analysts’ expectations. Overall, it was an exceptional quarter as it also recorded an impressive beat of analysts’ earnings and EBITDA estimates.
The stock is up 13.7% since reporting and currently trades at $23.28.
Read our full, actionable report on Allient here, it’s free.
Market Update
As expected, the Federal Reserve cut its policy rate by 25bps (a quarter of a percent) in November 2024 after Donald Trump triumphed in the US Presidential election. This marks the central bank's second easing of monetary policy after a large 50bps rate cut two months earlier. Going forward, the markets will debate whether these rate cuts (and more potential ones in 2025) are perfect timing to support the economy or a bit too late for a macro that has already cooled too much. Adding to the degree of difficulty is a new Republican administration that could make large changes to corporate taxes and prior efforts such as the Inflation Reduction Act.
Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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