Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at Belden (NYSE:BDC) 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 14.4% on average since the latest earnings results.
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 $624.9 million, up 16.6% year on year. This print exceeded analysts’ expectations by 1.8%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ adjusted operating income estimates and a solid beat of analysts’ EBITDA estimates.
“Thanks to the efforts of our team, Belden had a strong start to the year with revenues up 17%, combined with expanding margins,” said Ashish Chand, President and CEO of Belden.
Belden Total Revenue
Interestingly, the stock is up 6% since reporting and currently trades at $109.27.
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 a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Allient Total Revenue
The market seems happy with the results as the stock is up 39.3% since reporting. It currently trades at $30.92.
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 20.4% since the results and currently trades at $41.40.
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 came in 1.7% below analysts' expectations. Overall, it was a disappointing quarter as it also produced a significant miss of analysts’ EBITDA and EPS estimates.
Vishay Precision had the slowest revenue growth among its peers. The stock is up 3.7% since reporting and currently trades at $25.83.
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 $404.6 million, up 23.6% year on year. This result beat analysts’ expectations by 3.7%. It was an exceptional quarter as it also logged EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates.
Advanced Energy delivered the fastest revenue growth among its peers. The stock is up 17.2% since reporting and currently trades at $114.30.
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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