Spotting Winners: Allient (NASDAQ:ALNT) And Electronic Components Stocks In Q3

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the electronic components stocks, including Allient (NASDAQ:ALNT) 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 10 electronic components stocks we track reported an exceptional Q3. As a group, revenues beat analysts’ consensus estimates by 4.5% while next quarter’s revenue guidance was in line.

While some electronic components stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.9% since the latest earnings results.

Allient (NASDAQ:ALNT)

Founded in 1962, Allient (NASDAQ:ALNT) develops and manufactures precision and specialty-controlled motion components and systems.

Allient reported revenues of $138.7 million, up 10.8% year on year. This print exceeded analysts’ expectations by 3.4%. Overall, it was a stunning quarter for the company with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.

“Our results underscore the strong progress we are making. We delivered record gross margin of 33.3% and expanded operating margin by 350 basis points year-over-year on 11% revenue growth, while achieving robust cash generation and deleveraging year-to-date. Demand remained healthy across Industrial applications, particularly power quality solutions for data center infrastructure, and we continued to execute on key defense and medical applications,” commented Dick Warzala, Chairman and CEO.

The stock is down 5.6% since reporting and currently trades at $50.52.

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

Best Q3: 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 $110.4 million, up 18.5% year on year, outperforming analysts’ expectations by 15.7%. The business had an incredible quarter with a beat of analysts’ EPS and EBITDA estimates.

Vicor achieved the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 31.5% since reporting. It currently trades at $86.52.

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

Weakest Q3: 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 $247.8 million, up 1.4% year on year, exceeding analysts’ expectations by 0.8%. Still, it was a slower quarter as it posted a significant miss of analysts’ EBITDA estimates.

Novanta delivered the slowest revenue growth in the group. As expected, the stock is down 25.4% since the results and currently trades at $101.31.

Read our full analysis of Novanta’s results here.

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 $698.2 million, up 6.6% year on year. This print topped analysts’ expectations by 2.9%. It was a strong quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ Enterprise revenue estimates.

The stock is down 8.8% since reporting and currently trades at $108.92.

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

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 $4.27 billion, up 14.4% year on year. This number beat analysts’ expectations by 3.9%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ revenue estimates and an impressive beat of analysts’ Display Technologies revenue estimates.

The stock is down 7.1% since reporting and currently trades at $83.35.

Read our full, actionable report on Corning 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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