Electronic Components Stocks Q2 Results: Benchmarking Allient (NASDAQ:ALNT)
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Allient (NASDAQ:ALNT) and the rest of the electronic components stocks fared in Q2.
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.
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. This print fell short of analysts’ expectations by 2.6%. Overall, it was a disappointing quarter for the company with a miss of analysts’ earnings estimates.
Dick Warzala, Chairman and CEO, commented, “Despite strong efforts from our team, we saw a significant demand shift during the month of June, with a notable decline in the Industrial market related to automation and the recreational industry combined with lesser declines in other served markets. Lower than anticipated revenue combined with inventory reserves related to a customer bankruptcy and current gross margin dilution as expected from our most recent acquisition had a measurable impact on earnings in the second quarter."
Unsurprisingly, the stock is down 24.8% since reporting and currently trades at $17.91.
Read our full report on Allient 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 $100.
Is now the time to buy Bel Fuse? Access our full analysis of the earnings results here, it’s free.
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, in line with analysts’ expectations. It was a softer quarter as it posted a miss of analysts’ earnings estimates and revenue guidance for next quarter missing analysts’ expectations.
As expected, the stock is down 14.5% since the results and currently trades at $104.98.
Read our full analysis of Rogers’s results here.
Vicor (NASDAQ:VICR)
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 $85.85 million, down 19.6% year on year. This print surpassed analysts’ expectations by 5%. However, it was a mixed quarter as it logged a miss of analysts’ earnings estimates.
The stock is up 11.7% since reporting and currently trades at $42.45.
Read our full, actionable report on Vicor here, it’s free.
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 $3.60 billion, up 3.5% year on year. This print met analysts’ expectations. Overall, it was a strong quarter as it also recorded an impressive beat of analysts’ operating margin estimates.
The stock is up 4.4% since reporting and currently trades at $44.53.
Read our full, actionable report on Corning here, it’s free.
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