Electronic Components & Manufacturing Stocks Q3 In Review: CTS (NYSE:CTS) Vs Peers

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at electronic components & manufacturing stocks, starting with CTS (NYSE:CTS).

The sector could see higher demand as the prevalence of advanced electronics increases in industries such as automotive, healthcare, aerospace, and computing. The high-performance components and contract manufacturing expertise required for autonomous vehicles and cloud computing datacenters, for instance, will benefit companies in the space. However, headwinds include geopolitical risks, particularly U.S.-China trade tensions that could disrupt component sourcing and production as the Trump administration takes an increasingly antagonizing stance on foreign relations. Additionally, stringent environmental regulations on e-waste and emissions could force the industry to pivot in potentially costly ways.

The 10 electronic components & manufacturing stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 4.7% while next quarter’s revenue guidance was in line.

While some electronic components & manufacturing stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.4% since the latest earnings results.

Weakest Q3: CTS (NYSE:CTS)

With roots dating back to 1896 and a global manufacturing footprint, CTS (NYSE:CTS) designs and manufactures sensors, connectivity components, and actuators for aerospace, defense, industrial, medical, and transportation markets.

CTS reported revenues of $143 million, up 8% year on year. This print exceeded analysts’ expectations by 4.8%. Overall, it was a satisfactory quarter for the company with a solid beat of analysts’ revenue estimates but a significant miss of analysts’ EPS estimates.

“Our business had another quarter of strong growth with sales up 22% year over year in the diversified end markets. The CTS team executed well in a challenging environment achieving solid profitability and strong cash generation,” said Kieran O’Sullivan, CEO of CTS Corporation.

CTS scored the highest full-year guidance raise of the whole group. Even though it had a relatively good quarter, the market seems discontent with the results. The stock is down 6.3% since reporting and currently trades at $41.36.

Is now the time to buy CTS? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Amphenol (NYSE:APH)

With over 90 years of connecting the world's technologies, Amphenol (NYSE:APH) designs and manufactures connectors, cables, sensors, and interconnect systems that enable electrical and electronic connections across virtually every industry.

Amphenol reported revenues of $6.19 billion, up 53.4% year on year, outperforming analysts’ expectations by 10.9%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EPS guidance for next quarter estimates.

Amphenol delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 6.3% since reporting. It currently trades at $132.27.

Is now the time to buy Amphenol? Access our full analysis of the earnings results here, it’s free for active Edge members.

Benchmark (NYSE:BHE)

Operating as a critical behind-the-scenes partner for complex technology products since 1979, Benchmark Electronics (NYSE:BHE) provides advanced manufacturing, engineering, and technology solutions for original equipment manufacturers across aerospace, medical, industrial, and technology sectors.

Benchmark reported revenues of $680.7 million, up 3.5% year on year, exceeding analysts’ expectations by 2.9%. It may have had the worst quarter among its peers, but its results were still good as it also locked in a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

As expected, the stock is down 1.1% since the results and currently trades at $42.51.

Read our full analysis of Benchmark’s results here.

Rogers (NYSE:ROG)

With roots dating back to 1832, making it one of America's oldest continuously operating companies, Rogers (NYSE:ROG) designs and manufactures specialized engineered materials and components used in electric vehicles, telecommunications, renewable energy, and other high-performance applications.

Rogers reported revenues of $216 million, up 2.7% year on year. This result topped analysts’ expectations by 4.1%. It was a stunning quarter as it also recorded a beat of analysts’ EPS estimates and an impressive beat of analysts’ EPS guidance for next quarter estimates.

The stock is down 5.3% since reporting and currently trades at $79.13.

Read our full, actionable report on Rogers here, it’s free for active Edge members.

Knowles (NYSE:KN)

With roots dating back to 1946 and a focus on components that must perform flawlessly in critical situations, Knowles (NYSE:KN) designs and manufactures specialized electronic components like high-performance capacitors, microphones, and speakers for medical technology, defense, and industrial applications.

Knowles reported revenues of $152.9 million, up 7.3% year on year. This number surpassed analysts’ expectations by 2.6%. Overall, it was a very strong quarter as it also logged a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

The stock is down 11.9% since reporting and currently trades at $21.15.

Read our full, actionable report on Knowles here, it’s free for active Edge members.

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.

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