Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Novanta (NASDAQ:NOVT) 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 10 electronic components stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was in line.
Luckily, electronic components stocks have performed well with share prices up 22.3% on average since the latest earnings results.
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 $233.4 million, up 1.1% year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a decent beat of analysts’ EPS estimates but revenue guidance for next quarter missing analysts’ expectations.
Interestingly, the stock is up 5.5% since reporting and currently trades at $126.33.
Read our full report on Novanta here, it’s free.
Best Q1: Allient (NASDAQ:ALNT)
Founded in 1962, Allient (NASDAQ:ALNT) develops and manufactures precision and specialty-controlled motion components and systems.
Allient reported revenues of $132.8 million, down 9.5% year on year, outperforming analysts’ expectations by 5.7%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 41.8% since reporting. It currently trades at $31.47.
Is now the time to buy Allient? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $93.97 million, up 12% year on year, falling short of analysts’ expectations by 2.8%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Vicor delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 14.8% since the results and currently trades at $44.31.
Read our full analysis of Vicor’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 $3.45 billion, up 16% year on year. This result lagged analysts' expectations by 0.7%. Aside from that, it was a satisfactory quarter as it also recorded an impressive beat of analysts’ EBITDA estimates but a slight miss of analysts’ adjusted operating income estimates.
The stock is up 14.7% since reporting and currently trades at $50.51.
Read our full, actionable report on Corning here, it’s free.
Vishay Precision (NYSE:VPG)
Emerging from Vishay Intertechnology in 2010, Vishay Precision (NYSE:VPG) operates as a global provider of precision measurement and sensing technologies.
Vishay Precision reported revenues of $71.74 million, down 11.2% year on year. This print missed analysts’ expectations by 1.7%. Overall, it was a disappointing quarter as it also logged a significant miss of analysts’ EBITDA and EPS estimates.
Vishay Precision had the slowest revenue growth among its peers. The stock is up 10% since reporting and currently trades at $27.39.
Read our full, actionable report on Vishay Precision here, it’s free.
Market Update
As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.
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