Let’s dig into the relative performance of Vicor (NASDAQ:VICR) and its peers as we unravel the now-completed Q1 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 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 17.1% on average since the latest earnings results.
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. This print fell short of analysts’ expectations by 2.8%. Overall, it was a disappointing quarter for the company with a significant miss of analysts’ EBITDA and EPS estimates.
Commenting on first quarter performance, Chief Executive Officer Dr. Patrizio Vinciarelli stated: “Revenues and gross margins declined sequentially, with reduced income from a licensee transitioning to a new generation of unlicensed products. Margin improvements await higher utilization of our ChiP fab and increased income from existing and future licensees. Licensing has been gaining traction with OEMs and hyper-scalers wishing to avoid infringing hardware being excluded from importation into the US.”
Vicor delivered the weakest performance against analyst estimates of the whole group. The stock is down 19.2% since reporting and currently trades at $42.
Read our full report on Vicor 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 a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
The market seems happy with the results as the stock is up 41.5% since reporting. It currently trades at $31.40.
Is now the time to buy Allient? Access our full analysis of the earnings results 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, falling short of analysts’ expectations by 1.7%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.
Vishay Precision delivered the slowest revenue growth in the group. Interestingly, the stock is up 6.7% since the results and currently trades at $26.59.
Read our full analysis of Vishay Precision’s results here.
Littelfuse (NASDAQ:LFUS)
The developer of the first blade-type automotive fuse, Littelfuse (NASDAQ:LFUS) provides electrical protection and control components for the automotive, industrial, electronics, and telecommunications industries.
Littelfuse reported revenues of $554.3 million, up 3.5% year on year. This number surpassed analysts’ expectations by 2.2%. It was an exceptional quarter as it also put up an impressive beat of analysts’ EBITDA estimates.
The stock is up 18.1% since reporting and currently trades at $211.84.
Read our full, actionable report on Littelfuse 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. This print topped analysts’ expectations by 1.6%. Overall, it was a stunning quarter as it also recorded an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
The stock is up 1.1% since reporting and currently trades at $65.83.
Read our full, actionable report on Bel Fuse 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 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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