Q2 Rundown: Novanta (NASDAQ:NOVT) Vs Other Electronic Components Stocks

Looking back on electronic components stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Novanta (NASDAQ:NOVT) 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 mixed Q2. As a group, revenues beat analysts’ consensus estimates by 1.5% while next quarter’s revenue guidance was 1.7% below.

Inflation progressed towards the Fed's 2% goal recently, leading the Fed to reduce its policy rate by 50bps (half a percent or 0.5%) in September 2024. This is the first cut in four years. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be debating whether this rate cut's timing (and more potential ones in 2024 and 2025) is ideal for supporting the economy or a bit too late for a macro that has already cooled too much.

electronic components stocks have held steady amidst all this with average share prices 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 $235.9 million, up 2.8% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a miss of analysts’ earnings estimates and full-year revenue guidance missing analysts’ expectations.

“Novanta delivered another quarter of outstanding operating results,” said Matthijs Glastra, Chair and Chief Executive Officer of Novanta.

Interestingly, the stock is up 13.2% since reporting and currently trades at $177.15.

Read our full report on Novanta here, it’s free.

Best Q2: Bel Fuse (NASDAQ:BELFA)

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 $133.2 million, down 21.1% year on year, outperforming analysts’ expectations by 2.3%. The business had a stunning quarter with an impressive beat of analysts’ earnings estimates.

The market seems happy with the results as the stock is up 21.8% since reporting. It currently trades at $99.94.

Is now the time to buy Bel Fuse? Access our full analysis of the earnings results here, it’s free.

Weakest Q2: Allient (NASDAQ:ALNT)

Founded in 1962, Allient (NASDAQ:ALNT) develops and manufactures precision and specialty-controlled motion components and systems.

Allient reported revenues of $136 million, down 7.3% year on year, falling short of analysts’ expectations by 2.6%. It was a disappointing quarter as it posted a miss of analysts’ earnings estimates.

As expected, the stock is down 17.2% since the results and currently trades at $19.73.

Read our full analysis of Allient’s results here.

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 $214.2 million, down 7.2% year on year. This number met analysts’ expectations. Zooming out, it was a slower quarter as it produced a miss of analysts’ earnings estimates and revenue guidance for next quarter missing analysts’ expectations.

The stock is down 14.6% since reporting and currently trades at $104.78.

Read our full, actionable report on Rogers here, it’s free.

nLIGHT (NASDAQ:LASR)

Founded by a former CEO and Harvard-educated entrepreneur Scott Keeneyn, nLIGHT (NASDAQ:LASR) offers semiconductor and fiber lasers to the industrial, aerospace & defense, and medical sectors.

nLIGHT reported revenues of $50.51 million, down 5.2% year on year. This result beat analysts’ expectations by 2.7%. It was an exceptional quarter as it also recorded an impressive beat of analysts’ earnings and operating margin estimates.

The stock is down 5.3% since reporting and currently trades at $10.63.

Read our full, actionable report on nLIGHT here, it’s free.

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