Spotting Winners: Coherent (NYSE:COHR) And Electronic Components Stocks In Q4
As the Q4 earnings season wraps, let's dig into this quarter's best and worst performers in the electronic components industry, including Coherent (NYSE:COHR) 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 11 electronic components stocks we track reported a decent Q4; on average, revenues beat analyst consensus estimates by 0.8%. while next quarter's revenue guidance was in line with consensus. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, but electronic components stocks have performed well, with the share prices up 25.4% on average since the previous earnings results.
Coherent (NYSE:COHR)
Established in 1966 by six engineers, Coherent (NYSE:COHR) designs, manufactures, and sells photonic products for various industries.
Coherent reported revenues of $1.13 billion, down 17.4% year on year, exceeding analysts' expectations by 1.5%. Overall, it was a solid quarter for the company with an impressive beat of analysts' earnings estimates and full-year revenue guidance beating analysts' expectations.
The stock is up 63.7% since reporting and currently trades at $80.90.
Is now the time to buy Coherent? Access our full analysis of the earnings results here, it's free.
Best Q4: Corning (NYSE:GLW)
Supplying windows for some of the United States’s earliest spacecraft, Corning (NYSE:GLW) provides glass and other electronic components for the consumer electronics, telecommunications, automotive, and healthcare industries.
Corning reported revenues of $3.26 billion, down 3.2% year on year, outperforming analysts' expectations by 4.6%. It was a stunning quarter for the company with an impressive beat of analysts' Display Technologies revenue estimates and a decent beat of analysts' earnings estimates.
Corning scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 44.3% since reporting. It currently trades at $45.88.
Is now the time to buy Corning? Access our full analysis of the earnings results here, it's free.
Weakest Q4: Advanced Energy (NASDAQ:AEIS)
Pioneering technologies for radio frequency power delivery, Advanced Energy (NASDAQGS:AEIS) provides power supplies, thermal management systems, and measurement and control instruments for various manufacturing processes.
Advanced Energy reported revenues of $327.5 million, down 23% year on year, falling short of analysts' expectations by 6.9%. It was a weak quarter for the company with a miss of analysts' earnings and revenue estimates.
Advanced Energy had the weakest performance against analyst estimates in the group. Interestingly, the stock is up 19.9% since the results and currently trades at $115.01.
Read our full analysis of Advanced Energy's results here.
Rogers (NYSE:ROG)
With its silicone foam used in Apollo 11’s mission to the moon, Rogers (NYSE:ROG) produces advanced materials for the telecommunications, automotive, and electronics industries.
Rogers reported revenues of $213.4 million, down 12.5% year on year, surpassing analysts' expectations by 1.6%. Zooming out, it was a mixed quarter for the company: Rogers beat analysts' revenue expectations. On the other hand, its operating margin missed.
The stock is up 21.7% since reporting and currently trades at $133.40.
Read our full, actionable report on Rogers here, it's free.
Bel Fuse (NASDAQ:BELFA)
Founded by 26-year-old Elliot Bernstein during the electronics boom after WW2, Bel Fuse (NASDAQGS:BELF.A) provides electronic systems and devices to the telecommunications, networking, transportation, and industrial sectors.
Bel Fuse reported revenues of $128.1 million, down 25.7% year on year, in line with analysts' expectations. Overall, it was a strong quarter for the company with an impressive beat of analysts' earnings estimates.
Bel Fuse had the slowest revenue growth among its peers. The stock is up 17.5% since reporting and currently trades at $84.01.
Read our full, actionable report on Bel Fuse here, it's free.
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