Q3 Earnings Outperformers: Benchmark (NYSE:BHE) And The Rest Of The Electronic Components & Manufacturing Stocks

Looking back on electronic components & manufacturing stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Benchmark (NYSE:BHE) and its peers.

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.

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. This print exceeded analysts’ expectations by 2.9%. Overall, it was a strong quarter for the company with a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

“I am proud of our execution in the third quarter as we achieved the high end of our guidance for revenue and non-GAAP earnings per share,” said Jeff Benck, Benchmark’s CEO.

The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $42.67.

Is now the time to buy Benchmark? 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 pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 8.3% since reporting. It currently trades at $134.74.

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

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, exceeding analysts’ expectations by 4.8%. It was a satisfactory quarter as it also posted a solid beat of analysts’ revenue estimates but a significant miss of analysts’ EPS estimates.

As expected, the stock is down 1.5% since the results and currently trades at $41.82.

Read our full analysis of CTS’s results here.

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 print beat analysts’ expectations by 2.6%. Overall, it was a very strong quarter as it also recorded a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

The stock is down 11.1% since reporting and currently trades at $21.34.

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

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 number topped analysts’ expectations by 4.1%. It was a stunning quarter as it also put up a beat of analysts’ EPS estimates and an impressive beat of analysts’ EPS guidance for next quarter estimates.

The stock is down 4.2% since reporting and currently trades at $80.07.

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

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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