As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the electronic components industry, including Allient (NASDAQ:ALNT) 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 satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1.3% while next quarter’s revenue guidance was 3.6% below.
While some electronic components stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.6% since the latest earnings results.
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 print exceeded analysts’ expectations by 0.6%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
“Our focus on improving margin and operational efficiencies has driven solid sequential improvements, even as we navigate softer demand in key industrial and vehicle markets,” said Dick Warzala, Chairman and CEO.
Interestingly, the stock is up 17.2% since reporting and currently trades at $24.
Is now the time to buy Allient? 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 a solid beat of analysts’ EPS estimates.
Vicor scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 8.5% since reporting. It currently trades at $47.10.
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, exceeding analysts’ expectations by 0.9%. Still, it was a softer quarter as it posted full-year EBITDA guidance missing analysts’ expectations.
As expected, the stock is down 16.2% since the results and currently trades at $146.18.
Read our full analysis of Novanta’s results here.
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 result surpassed analysts’ expectations by 1.1%. Overall, it was a strong quarter as it also produced a decent beat of analysts’ EBITDA estimates and EPS guidance for next quarter topping analysts’ expectations.
The stock is up 12.3% since reporting and currently trades at $19.33.
Read our full, actionable report on Knowles here, it’s free.
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 $210.3 million, down 8.2% year on year. This number missed analysts’ expectations by 4.5%. It was a slower quarter as it also recorded revenue guidance for next quarter missing analysts’ expectations.
Rogers had the weakest performance against analyst estimates among its peers. The stock is down 3% since reporting and currently trades at $96.48.
Read our full, actionable report on Rogers here, it’s free.
Market Update
Thanks to the Fed's series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market has thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% each in November and December), and a notable surge followed Donald Trump's presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by the pace and magnitude of future rate cuts as well as potential changes in trade policy and corporate taxes once the Trump administration takes over. The path forward is marked by uncertainty.
Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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