Let’s dig into the relative performance of Vicor (NASDAQ:VICR) and its peers as we unravel the now-completed Q3 electronic components earnings season.
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.
In light of this news, share prices of the companies have held steady as they are up 1.6% on average since the latest earnings results.
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. This print exceeded analysts’ expectations by 15.7%. Overall, it was an incredible quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Commenting on third quarter performance, Chief Executive Officer Dr. Patrizio Vinciarelli stated: “Licensing revenue reached a record rate in Q3 following the litigation settlement for prior infringement recorded in Q2. As high density power systems pioneered by Vicor, including NBMs and VPD, are on the critical path of high performance computing, I expect Vicor’s IP licensing practice to grow substantially. OEMs and hyper-scalers need a license, or need to renew their license or expand its scope. Vicor is pursuing additional actions to curtail access to infringing computing systems sourced from infringing contract manufacturers relying on infringing power module makers.”
Vicor achieved the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 42% since reporting and currently trades at $93.60.
Is now the time to buy Vicor? Access our full analysis of the earnings results here, it’s free for active Edge members.
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 $66.74 million, up 18.9% year on year, outperforming analysts’ expectations by 5.4%. The business had an incredible quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 11.3% since reporting. It currently trades at $33.07.
Is now the time to buy nLIGHT? 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 18.7% since the results and currently trades at $110.45.
Read our full analysis of Novanta’s results here.
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 $179 million, up 44.8% year on year. This number surpassed analysts’ expectations by 3.7%. Overall, it was an incredible quarter as it also recorded a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Bel Fuse scored the fastest revenue growth among its peers. The stock is down 3.2% since reporting and currently trades at $131.61.
Read our full, actionable report on Bel Fuse here, it’s free for active Edge members.
Advanced Energy (NASDAQ:AEIS)
Pioneering technologies for radio frequency power delivery, Advanced Energy (NASDAQ:AEIS) provides power supplies, thermal management systems, and measurement and control instruments for various manufacturing processes.
Advanced Energy reported revenues of $463.3 million, up 23.8% year on year. This print beat analysts’ expectations by 5%. It was a stunning quarter as it also produced an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ adjusted operating income estimates.
The stock is up 7.7% since reporting and currently trades at $210.32.
Read our full, actionable report on Advanced Energy 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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