Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let’s have a look at nLIGHT (NASDAQ: LASR) 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 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 16.2% on average since the latest earnings results.
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 print exceeded analysts’ expectations by 9.1%. Overall, it was a stunning quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
nLIGHT achieved the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 48.8% since reporting and currently trades at $12.79.
Is now the time to buy nLIGHT? Access our full analysis of the earnings results here, it’s free.
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, outperforming analysts’ expectations by 5.7%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 42.1% since reporting. It currently trades at $31.53.
Is now the time to buy Allient? 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 15% since the results and currently trades at $44.18.
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 result beat analysts’ expectations by 1.8%. Overall, it was a very strong quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates.
The stock is up 9.5% since reporting and currently trades at $112.89.
Read our full, actionable report on Belden here, it’s free.
Vishay Precision (NYSE: VPG)
Emerging from Vishay Intertechnology in 2010, Vishay Precision (NYSE: VPG) operates as a global provider of precision measurement and sensing technologies.
Vishay Precision reported revenues of $71.74 million, down 11.2% year on year. This number lagged analysts' expectations by 1.7%. Overall, it was a disappointing quarter as it also recorded a significant miss of analysts’ EBITDA and EPS estimates.
Vishay Precision had the slowest revenue growth among its peers. The stock is up 4.1% since reporting and currently trades at $25.92.
Read our full, actionable report on Vishay Precision here, it’s free.
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.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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