Let’s dig into the relative performance of nLIGHT (NASDAQ: LASR) and its peers as we unravel the now-completed Q2 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 a very strong Q2. As a group, revenues beat analysts’ consensus estimates by 4.8% while next quarter’s revenue guidance was in line.
Luckily, electronic components stocks have performed well with share prices up 21.6% 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 $61.74 million, up 22.2% year on year. This print exceeded analysts’ expectations by 11%. Overall, it was a stunning quarter for the company with EBITDA guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
nLIGHT pulled off the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 55.2% since reporting and currently trades at $31.75.
Is now the time to buy nLIGHT? Access our full analysis of the earnings results here, it’s free.
Best Q2: 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 $168.3 million, up 26.3% year on year, outperforming analysts’ expectations by 10.1%. The business had an incredible quarter with a solid beat of analysts’ EPS and EBITDA estimates.
Bel Fuse scored the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 27.7% since reporting. It currently trades at $118.11.
Is now the time to buy Bel Fuse? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $241 million, up 2.2% year on year, exceeding analysts’ expectations by 1.3%. Still, it was a slower quarter as it posted full-year sales, EPS and EBITDA guidance missing analysts’ expectations.
As expected, the stock is down 7.6% since the results and currently trades at $114.69.
Read our full analysis of Novanta’s results here.
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 $75.16 million, down 2.8% year on year. This result surpassed analysts’ expectations by 3.1%. It was an exceptional quarter as it also produced a beat of analysts’ EPS and EBITDA estimates.
Vishay Precision had the slowest revenue growth among its peers. The stock is up 26.3% since reporting and currently trades at $32.92.
Read our full, actionable report on Vishay Precision here, it’s free.
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 $441.5 million, up 21% year on year. This number topped analysts’ expectations by 5%. Overall, it was a very strong quarter as it also put up EPS guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ adjusted operating income estimates.
The stock is up 24.5% since reporting and currently trades at $174.35.
Read our full, actionable report on Advanced Energy 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.
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