As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the electronic components & manufacturing industry, including TTM Technologies (NASDAQ: TTMI) 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 9 electronic components & manufacturing stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.4% 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 26.1% since the latest earnings results.
TTM Technologies (NASDAQ: TTMI)
As one of the world's largest printed circuit board manufacturers with facilities spanning North America and Asia, TTM Technologies (NASDAQ: TTMI) manufactures printed circuit boards (PCBs) and radio frequency (RF) components for aerospace, defense, automotive, and telecommunications industries.
TTM Technologies reported revenues of $651 million, up 14.4% year on year. This print exceeded analysts’ expectations by 2.9%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ EPS estimates and revenue guidance for next quarter meeting analysts’ expectations.
“We delivered a solid quarter with revenues and non-GAAP EPS above the high end of the guided range. Revenues reflected the fourth consecutive quarter of year on year growth due to demand strength in our Aerospace and Defense, Data Center Computing and Networking end markets, the latter two being driven by generative AI,” said Tom Edman, CEO of TTM.
The stock is down 26.4% since reporting and currently trades at $18.22.
Is now the time to buy TTM Technologies? Access our full analysis of the earnings results here, it’s free.
Best Q4: Flex (NASDAQ: FLEX)
Originally known as Flextronics until its 2016 rebranding, Flex (NASDAQ: FLEX) is a global manufacturing partner that designs, engineers, and builds products for companies across industries from medical devices to solar trackers.
Flex reported revenues of $6.56 billion, up 2.1% year on year, outperforming analysts’ expectations by 5.7%. The business had a very strong quarter with an impressive beat of analysts’ EPS estimates and an impressive beat of analysts’ full-year EPS guidance estimates.
Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 28.7% since reporting. It currently trades at $29.
Is now the time to buy Flex? 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 39.8% since the results and currently trades at $10.98.
Read our full analysis of Knowles’s results here.
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 result was in line with analysts’ expectations. Aside from that, it was a decent quarter as it also produced a solid beat of analysts’ EPS estimates.
The stock is down 33.4% since reporting and currently trades at $113.61.
Read our full, actionable report on Plexus here, it’s free.
Benchmark (NYSE: BHE)
Operating as a critical behind-the-scenes partner for complex technology products since 1979, Benchmark Electronics (NYSE: BHE) provides advanced manufacturing, engineering, and technology solutions for original equipment manufacturers across aerospace, medical, industrial, and technology sectors.
Benchmark reported revenues of $656.9 million, down 5% year on year. This print met analysts’ expectations. It was a strong quarter as it also recorded an impressive beat of analysts’ EPS estimates.
The stock is down 22.9% since reporting and currently trades at $33.65.
Read our full, actionable report on Benchmark here, it’s free.
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