Electronic Components Stocks Q2 In Review: Belden (NYSE:BDC) Vs Peers
Earnings results often indicate what direction a company will take in the months ahead. With Q2 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 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.
The Fed cut its policy rate by 50bps (half a percent) in September 2024, the first in roughly four years. This marks the end of its most pointed inflation-busting campaign since the 1980s. While CPI (inflation) readings have been supportive lately, employment measures have bordered on worrisome. The markets will be assessing 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.
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 $604.3 million, down 12.7% year on year. This print exceeded analysts’ expectations by 5.3%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ operating margin estimates.
“Demand for the quarter was steady, with our team delivering second quarter revenues and EPS exceeding expectations,” said Ashish Chand, President and CEO of Belden.
Belden pulled off the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 28% since reporting and currently trades at $118.42.
Is now the time to buy Belden? Access our full analysis of the earnings results 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 24.2% since reporting. It currently trades at $101.97.
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 24% since the results and currently trades at $18.11.
Read our full analysis of Allient’s results here.
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 number met analysts’ expectations. Aside from that, it was a slower quarter as it produced a miss of analysts’ earnings estimates and full-year revenue guidance missing analysts’ expectations.
The stock is up 11.8% since reporting and currently trades at $174.98.
Read our full, actionable report on Novanta 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 print surpassed analysts’ expectations by 2.7%. Overall, it was an exceptional quarter as it also put up an impressive beat of analysts’ earnings estimates.
The stock is down 1.6% since reporting and currently trades at $11.04.
Read our full, actionable report on nLIGHT here, it’s free.
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