The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how electronic components stocks fared in Q4, starting with Advanced Energy (NASDAQ: AEIS).
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 10 electronic components stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 3.1% while next quarter’s revenue guidance was 0.6% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 17.9% since the latest earnings results.
Best Q4: Advanced Energy (NASDAQ: AEIS)
Pioneering technologies for radio frequency power delivery, Advanced Energy (NASDAQ: AEIS) provides power supplies, thermal management systems, and measurement and control instruments for various manufacturing processes.
Advanced Energy reported revenues of $415.4 million, up 2.5% year on year. This print exceeded analysts’ expectations by 5.5%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EBITDA estimates.
“Fourth quarter results exceeded our guidance, with total revenue resuming year-over-year growth on better-than-expected demand in our semiconductor and data center computing markets,” said Steve Kelley, president and CEO of Advanced Energy.
The stock is down 20.1% since reporting and currently trades at $88.77.
Is now the time to buy Advanced Energy? Access our full analysis of the earnings results here, it’s free.
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 $666 million, up 20.8% year on year, outperforming analysts’ expectations by 1.7%. The business had a very strong quarter with a solid beat of analysts’ adjusted operating income estimates.
The stock is down 18.2% since reporting. It currently trades at $94.90.
Is now the time to buy Belden? Access our full analysis of the earnings results here, it’s free.
Slowest Q4: Vishay Precision (NYSE: VPG)
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 $72.65 million, down 18.8% year on year, falling short of analysts’ expectations by 1.3%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Vishay Precision delivered the slowest revenue growth in the group. As expected, the stock is down 16.1% since the results and currently trades at $20.13.
Read our full analysis of Vishay Precision’s results here.
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 $3.87 billion, up 29.4% year on year. This result beat analysts’ expectations by 3%. It was a strong quarter as it also produced a solid beat of analysts’ Optical Communications revenue estimates and revenue guidance for next quarter topping analysts’ expectations.
Corning delivered the fastest revenue growth among its peers. The stock is down 17.1% since reporting and currently trades at $42.55.
Read our full, actionable report on Corning 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 $47.38 million, down 8.7% year on year. This number came in 3.7% below analysts' expectations. It was a slower quarter as it also recorded a significant miss of analysts’ EBITDA and EPS estimates.
nLIGHT had the weakest performance against analyst estimates among its peers. The stock is down 19% since reporting and currently trades at $7.35.
Read our full, actionable report on nLIGHT here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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