Looking back on electronic components & manufacturing stocks’ Q4 earnings, we examine this quarter’s best and worst performers, including Plexus (NASDAQ: PLXS) and its peers.
The sector could see higher demand as the prevalence of advanced electronics increases in industries such as automotive, healthcare, aerospace, and computing. The high-performance components and contract manufacturing expertise required for autonomous vehicles and cloud computing datacenters, for instance, will benefit companies in the space. However, headwinds include geopolitical risks, particularly U.S.-China trade tensions that could disrupt component sourcing and production as the Trump administration takes an increasingly antagonizing stance on foreign relations. Additionally, stringent environmental regulations on e-waste and emissions could force the industry to pivot in potentially costly ways.
The 10 electronic components & manufacturing stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was 1.9% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 21.9% since the latest earnings results.
Plexus (NASDAQ: PLXS)
With over 20,000 team members across 26 global facilities, Plexus (NASDAQ: PLXS) designs, manufactures, and services complex electronic products for companies in aerospace/defense, healthcare, and industrial sectors.
Plexus reported revenues of $976.1 million, flat year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with a solid beat of analysts’ EPS estimates.
Todd Kelsey, President and Chief Executive Officer, commented, "Our team's agility and responsiveness enabled strong operating performance in the fiscal first quarter, resulting in robust financial results to begin fiscal 2025. We delivered fiscal first quarter revenue of $976 million, in-line with expectations, and non-GAAP operating margin of 6.0%, near the high end of our guidance and consistent with our long-term goal. This contributed to non-GAAP EPS of $1.73, which exceeded guidance. Furthermore, free cash flow generation surpassed expectations, benefiting from the ongoing efforts of our fiscal 2024 initiatives to drive sustained improvement in working capital efficiency."
The stock is down 28.2% since reporting and currently trades at $122.65.
Is now the time to buy Plexus? Access our full analysis of the earnings results here, it’s free.
Best Q4: Coherent (NYSE: COHR)
Created through the 2022 rebranding of II-VI Incorporated, a company with roots dating back to 1971, Coherent (NYSE: COHR) develops and manufactures advanced materials, lasers, and optical components for applications ranging from telecommunications to industrial manufacturing.
Coherent reported revenues of $1.43 billion, up 26.8% year on year, outperforming analysts’ expectations by 4.4%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates.
The stock is down 37.2% since reporting. It currently trades at $56.54.
Is now the time to buy Coherent? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Knowles (NYSE: KN)
With roots dating back to 1946 and a focus on components that must perform flawlessly in critical situations, Knowles (NYSE: KN) designs and manufactures specialized electronic components like high-performance capacitors, microphones, and speakers for medical technology, defense, and industrial applications.
Knowles reported revenues of $142.5 million, down 33.8% year on year, falling short of analysts’ expectations by 2.4%. It was a disappointing quarter as it posted revenue guidance for next quarter missing analysts’ expectations.
Knowles delivered the slowest revenue growth in the group. As expected, the stock is down 16.7% since the results and currently trades at $15.20.
Read our full analysis of Knowles’s results here.
Jabil (NYSE: JBL)
With manufacturing facilities spanning the globe from China to Mexico to the United States, Jabil (NYSE: JBL) provides electronics design, manufacturing, and supply chain solutions to companies across various industries, from healthcare to automotive to cloud computing.
Jabil reported revenues of $6.73 billion, flat year on year. This result surpassed analysts’ expectations by 5.1%. It was a strong quarter as it also produced a solid beat of analysts’ full-year EPS guidance estimates.
Jabil scored the highest full-year guidance raise among its peers. The stock is down 3.3% since reporting and currently trades at $134.87.
Read our full, actionable report on Jabil here, it’s free.
CTS (NYSE: CTS)
With roots dating back to 1896 and a global manufacturing footprint, CTS (NYSE: CTS) designs and manufactures sensors, connectivity components, and actuators for aerospace, defense, industrial, medical, and transportation markets.
CTS reported revenues of $127.4 million, up 2.2% year on year. This number missed analysts’ expectations by 4%. It was a disappointing quarter as it also logged full-year revenue guidance missing analysts’ expectations.
CTS had the weakest performance against analyst estimates among its peers. The stock is down 24.1% since reporting and currently trades at $37.33.
Read our full, actionable report on CTS here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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