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Reflecting On Electronic Components Stocks’ Q3 Earnings: Vishay Precision (NYSE:VPG)
Reflecting On Electronic Components Stocks’ Q3 Earnings: Vishay Precision (NYSE:VPG)
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 Vishay Precision (NYSE:VPG).
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 as they are up 1.1% on average since the latest earnings results.
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 $75.73 million, down 11.8% year on year. This print exceeded analysts’ expectations by 2.4%. Despite the top-line beat, it was still a mixed quarter for the company with a narrow beat of analysts’ EBITDA estimates but a miss of analysts’ EPS estimates.
Ziv Shoshani, Chief Executive Officer of VPG, commented, "Total revenue in the third quarter was fairly stable sequentially, as trends across our markets remained mixed. Some of our cyclical markets such as steel and consumer were soft, while orders in test and measurement and avionics, military & space were higher. Total orders of $68.6 million declined 6.7% sequentially and resulted in a book-to-bill of 0.91."
Vishay Precision Total Revenue
Unsurprisingly, the stock is down 3.8% since reporting and currently trades at $22.71.
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’ 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 15.3% since reporting. It currently trades at $50.06.
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 13.6% since the results and currently trades at $150.72.
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 result was in line with analysts’ expectations. It was a strong quarter as it also logged EPS guidance for next quarter exceeding analysts’ expectations.
The stock is up 16.1% since reporting and currently trades at $125.23.
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 beat 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 17.8% since reporting and currently trades at $20.28.
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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