Electrical Systems Stocks Q3 Highlights: Garrett Motion (NASDAQ:GTX)

Wrapping up Q3 earnings, we look at the numbers and key takeaways for the electrical systems stocks, including Garrett Motion (NASDAQ:GTX) and its peers.

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 15 electrical systems stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 4.3% while next quarter’s revenue guidance was 1.3% below.

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

Garrett Motion (NASDAQ:GTX)

A key player in the transition to cleaner vehicles, Garrett Motion (NYSE:GTX) designs and manufactures turbochargers, air compressors, and electric motor technologies for vehicle manufacturers and industrial applications.

Garrett Motion reported revenues of $902 million, up 9.2% year on year. This print exceeded analysts’ expectations by 4.1%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ revenue estimates.

The stock is up 48.4% since reporting and currently trades at $18.57.

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

Best Q3: Thermon (NYSE:THR)

Creating the first packaged tracing systems, Thermon (NYSE:THR) is a leading provider of engineered industrial process heating solutions for process industries.

Thermon reported revenues of $131.7 million, up 14.9% year on year, outperforming analysts’ expectations by 10.3%. The business had a stunning quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

Thermon delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 40.4% since reporting. It currently trades at $41.30.

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

Weakest Q3: Atkore (NYSE:ATKR)

Protecting the things that power our world, Atkore (NYSE:ATKR) designs and manufactures electrical safety products.

Atkore reported revenues of $752 million, down 4.6% year on year, exceeding analysts’ expectations by 2.5%. Still, it was a slower quarter as it posted a significant miss of analysts’ adjusted operating income estimates.

Interestingly, the stock is up 8.2% since the results and currently trades at $72.00.

Read our full analysis of Atkore’s results here.

Vertiv (NYSE:VRT)

Formerly part of Emerson Electric, Vertiv (NYSE:VRT) manufactures and services infrastructure technology products for data centers and communication networks.

Vertiv reported revenues of $2.68 billion, up 29% year on year. This number surpassed analysts’ expectations by 3.4%. Overall, it was an exceptional quarter as it also produced a solid beat of analysts’ organic revenue estimates and a beat of analysts’ EPS estimates.

Vertiv pulled off the fastest revenue growth among its peers. The stock is up 1.7% since reporting and currently trades at $177.83.

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

LSI (NASDAQ:LYTS)

Enhancing commercial environments, LSI (NASDAQ:LYTS) provides lighting and display solutions for businesses and retailers.

LSI reported revenues of $157.2 million, up 13.9% year on year. This result topped analysts’ expectations by 5.2%. It was an exceptional quarter as it also put up an impressive beat of analysts’ revenue estimates and a solid beat of analysts’ EBITDA estimates.

The stock is down 13.7% since reporting and currently trades at $19.84.

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

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