Q1 Electronic Components Earnings Review: First Prize Goes to Allient (NASDAQ:ALNT)

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Allient (NASDAQ:ALNT) and the best and worst performers in the electronic components industry.

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 strong Q1. As a group, revenues beat analysts’ consensus estimates by 1.9% while next quarter’s revenue guidance was in line.

Luckily, electronic components stocks have performed well with share prices up 14.3% on average since the latest earnings results.

Best Q1: Allient (NASDAQ:ALNT)

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

Allient reported revenues of $132.8 million, down 9.5% year on year. This print exceeded analysts’ expectations by 5.7%. Overall, it was an incredible quarter for the company with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Dick Warzala, Chairman and CEO, commented, “Our first quarter results demonstrate the strength of our diversified business model and the effectiveness of our strategic initiatives. We achieved solid sequential growth in sales and profitability overall as we continue to more closely align our business with our customers and focus on taking the necessary actions to ensure we achieve our long-term strategic goals and objectives. Our 'Simplify to Accelerate NOW' actions are aligned with our strategy and are delivering meaningful improvements to our operational performance and positioning us for long-term success.​

The stock is up 37.2% since reporting and currently trades at $30.44.

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

Bel Fuse (NASDAQ:BELFA)

Founded by 26-year-old Elliot Bernstein during the electronics boom after WW2, Bel Fuse (NASDAQ:BELF.A) provides electronic systems and devices to the telecommunications, networking, transportation, and industrial sectors.

Bel Fuse reported revenues of $152.2 million, up 18.9% year on year, outperforming analysts’ expectations by 1.6%. The business had a stunning quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The market seems content with the results as the stock is up 1.4% since reporting. It currently trades at $65.99.

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

Weakest Q1: 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 $93.97 million, up 12% year on year, falling short of analysts’ expectations by 2.8%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.

Vicor delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 20.1% since the results and currently trades at $41.55.

Read our full analysis of Vicor’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 $624.9 million, up 16.6% year on year. This number surpassed analysts’ expectations by 1.8%. Overall, it was a very strong quarter as it also recorded an impressive beat of analysts’ adjusted operating income estimates.

The stock is up 5% since reporting and currently trades at $108.27.

Read our full, actionable report on Belden 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 $51.67 million, up 16% year on year. This result topped analysts’ expectations by 9.1%. It was a stunning quarter as it also put up an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

nLIGHT delivered the biggest analyst estimates beat among its peers. The stock is up 67.8% since reporting and currently trades at $14.42.

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

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.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

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