A Look Back at Electronic Components Stocks’ Q3 Earnings: Novanta (NASDAQ:NOVT) Vs The Rest Of The Pack
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 Q3. Today, we are looking at electronic components stocks, starting with Novanta (NASDAQ:NOVT).
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.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged 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 $244.4 million, up 10.3% year on year. This print exceeded analysts’ expectations by 0.9%. Despite the top-line beat, it was still a softer quarter for the company with full-year EBITDA guidance missing analysts’ expectations significantly.
“Our team delivered strong third quarter results, at the top end of our guidance range, driven by the strength of our diversified business and the Novanta Growth System operating model,” said Matthijs Glastra, Chair and Chief Executive Officer.
Novanta Total Revenue
Unsurprisingly, the stock is down 10.8% since reporting and currently trades at $155.56.
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 Total Revenue
Vicor achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 18.8% since reporting. It currently trades at $51.57.
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, exceeding analysts’ expectations by 0.8%. Still, it was a slower quarter as it posted a significant miss of analysts’ EPS estimates and revenue guidance for next quarter missing analysts’ expectations.
Bel Fuse delivered the slowest revenue growth in the group. As expected, the stock is down 10.4% since the results and currently trades at $92.25.
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 surpassed analysts’ expectations by 0.6%. Overall, it was an exceptional quarter as it also put up an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The stock is up 17.3% since reporting and currently trades at $24.02.
Pioneering technologies for radio frequency power delivery, Advanced Energy (NASDAQ:AEIS) provides power supplies, thermal management systems, and measurement and control instruments for various manufacturing processes.
Advanced Energy reported revenues of $374.2 million, down 8.7% year on year. This print met analysts’ expectations. It was a strong quarter as it also recorded EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ adjusted operating income estimates.
The stock is up 7.6% since reporting and currently trades at $116.14.
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.
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