Winners And Losers Of Q3: Corning (NYSE:GLW) Vs The Rest Of The Electronic Components Stocks
As the Q3 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the electronic components industry, including Corning (NYSE:GLW) 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.
In light of this news, share prices of the companies have held steady as they are up 4.6% on average since the latest earnings results.
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 $3.73 billion, up 7.9% year on year. This print was in line with analysts’ expectations, and overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ Optical Communications revenue estimates.
Corning Total Revenue
Interestingly, the stock is up 5.7% since reporting and currently trades at $49.56.
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 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 32% since reporting. It currently trades at $57.29.
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 6.4% since the results and currently trades at $163.27.
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 result beat analysts’ expectations by 2.4%. Taking a step back, it was a mixed quarter as it also produced a narrow beat of analysts’ EBITDA estimates but a miss of analysts’ EPS estimates.
The stock is flat since reporting and currently trades at $23.45.
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 $654.9 million, up 4.5% year on year. This number beat analysts’ expectations by 1.7%. It was a very strong quarter as it also put up an impressive beat of analysts’ adjusted operating income estimates.
The stock is up 4.1% since reporting and currently trades at $122.39.
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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