Electrical Systems Stocks Q1 Highlights: Benchmark Electronics (NYSE:BHE)

Let’s dig into the relative performance of Benchmark Electronics (NYSE:BHE) and its peers as we unravel the now-completed Q1 electrical systems earnings season.

Like many equipment and component manufacturers, electrical systems companies are buoyed by secular trends such as connectivity and industrial automation. More specific pockets of strong demand include Internet of Things (IoT) connectivity and the 5G telecom upgrade cycle, which can benefit companies whose cables and conduits fit those needs. But like the broader industrials sector, these companies are also at the whim of economic cycles. Interest rates, for example, can greatly impact projects that drive demand for these products.

The 16 electrical systems stocks we track reported a satisfactory Q1. As a group, revenues beat analysts’ consensus estimates by 2.5% while next quarter’s revenue guidance was in line.

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.

Luckily, electrical systems stocks have performed well with share prices up 10.3% on average since the latest earnings results.

Benchmark Electronics (NYSE:BHE)

Based in Tempe, Arizona, Benchmark Electronics (NYSE:BHE) is a global provider of product design, engineering services, technology solutions, and manufacturing services.

Benchmark Electronics reported revenues of $675.6 million, down 2.8% year on year. This print exceeded analysts’ expectations by 4.7%. Overall, it was an exceptional quarter for the company with a decent beat of analysts’ earnings estimates.

"Once again Benchmark delivered solid results, demonstrating consistent progress toward achieving our longer-term operational objectives," said Jeff Benck, Benchmark's President and CEO.

Interestingly, the stock is up 9.2% since reporting and currently trades at $44.41.

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

Best Q1: Powell (NASDAQ:POWL)

Originally a metal-working shop supporting local petrochemical facilities, Powell (NYSE:POWL) has grown from a small Houston manufacturer to a global provider of electrical systems.

Powell reported revenues of $288.2 million, up 49.8% year on year, outperforming analysts’ expectations by 29.7%. The business had an incredible quarter with an impressive beat of analysts’ earnings estimates.

Powell scored the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 107% since reporting. It currently trades at $275.59.

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

Weakest Q1: Methode Electronics (NYSE:MEI)

Founded in 1946, Methode Electronics (NYSE:MEI) is a global supplier of custom-engineered solutions for Original Equipment Manufacturers (OEMs).

Methode Electronics reported revenues of $258.5 million, down 10.8% year on year, falling short of analysts’ expectations by 3%. It was a disappointing quarter as it posted a miss of analysts’ earnings estimates.

Interestingly, the stock is up 10.8% since the results and currently trades at $11.15.

Read our full analysis of Methode Electronics’s results here.

Hubbell (NYSE:HUBB)

A respected player in the electrical segment, Hubbell (NYSE:HUBB) manufactures electronic products for the construction, industrial, utility, and telecommunications markets.

Hubbell reported revenues of $1.45 billion, up 6.3% year on year. This number came in 2.1% below analysts' expectations. Overall, it was a slower quarter as it also logged a miss of analysts’ organic revenue estimates.

The stock is up 25% since reporting and currently trades at $459.

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

Whirlpool (NYSE:WHR)

Credited with introducing the first automatic washing machine, Whirlpool (NYSE:WHR) is a manufacturer of a variety of home appliances.

Whirlpool reported revenues of $3.99 billion, down 16.8% year on year. This number met analysts’ expectations. Zooming out, it was a mixed quarter with a miss of analysts’ operating margin estimates.

Whirlpool had the slowest revenue growth among its peers. The stock is up 5.6% since reporting and currently trades at $104.21.

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

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