The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how electronic components & manufacturing stocks fared in Q1, starting with CTS (NYSE:CTS).
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 strong Q1. As a group, revenues beat analysts’ consensus estimates by 3.6% while next quarter’s revenue guidance was in line.
Luckily, electronic components & manufacturing stocks have performed well with share prices up 28.2% on average since the latest earnings results.
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 $125.8 million, flat year on year. This print fell short of analysts’ expectations by 2.3%. Overall, it was a slower quarter for the company with a significant miss of analysts’ EPS estimates.
“Our global teams continued to execute well in a challenging operating environment. We delivered double digit sales growth in our diversified markets,” said Kieran O’Sullivan, CEO of CTS Corporation.
CTS delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 6.8% since reporting and currently trades at $42.61.
Read our full report on CTS here, it’s free.
Best Q1: 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 $648.7 million, up 13.8% year on year, outperforming analysts’ expectations by 4.6%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EPS guidance for next quarter estimates.
The market seems happy with the results as the stock is up 104% since reporting. It currently trades at $41.
Is now the time to buy TTM Technologies? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: 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 $631.8 million, down 6.5% year on year, falling short of analysts’ expectations by 1.3%. It was a softer quarter as it posted revenue guidance for next quarter missing analysts’ expectations significantly and a slight miss of analysts’ EPS guidance for next quarter estimates.
Interestingly, the stock is up 1.4% since the results and currently trades at $38.83.
Read our full analysis of Benchmark’s results here.
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 $6.40 billion, up 3.7% year on year. This number topped analysts’ expectations by 2.6%. Aside from that, it was a mixed quarter as it underperformed in some other aspects of the business.
Flex had the weakest full-year guidance update among its peers. The stock is up 36.1% since reporting and currently trades at $50.00.
Read our full, actionable report on Flex here, it’s free.
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 $7.83 billion, up 15.7% year on year. This print surpassed analysts’ expectations by 11.2%. Overall, it was a very strong quarter as it also logged a solid beat of analysts’ full-year EPS guidance estimates and full-year revenue guidance beating analysts’ expectations.
Jabil pulled off the highest full-year guidance raise among its peers. The stock is up 20.4% since reporting and currently trades at $217.95.
Read our full, actionable report on Jabil 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 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.