As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q4. Today, we are looking at electrical systems stocks, starting with Whirlpool (NYSE:WHR).
Like many equipment and component manufacturers, electrical systems companies are buoyed by secular trends such as connectivity and industrial automation. More specific pockets of strong demand include Internet of Things (IoT) connectivity and the 5G telecom upgrade cycle, which can benefit companies whose cables and conduits fit those needs. But like the broader industrials sector, these companies are also at the whim of economic cycles. Interest rates, for example, can greatly impact projects that drive demand for these products.
The 13 electrical systems stocks we track reported a slower Q4. As a group, revenues beat analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was 6.1% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 14.4% since the latest earnings results.
Whirlpool (NYSE:WHR)
Credited with introducing the first automatic washing machine, Whirlpool (NYSE:WHR) is a manufacturer of a variety of home appliances.
Whirlpool reported revenues of $4.14 billion, down 18.7% year on year. This print fell short of analysts’ expectations by 1.5%. Overall, it was a disappointing quarter for the company with full-year EPS guidance missing analysts’ expectations.
"In 2024, we continued to make progress in our operations and delivered on our cost take out commitment of $300 million while achieving the closure of the Europe transaction, supporting our ongoing portfolio transformation," said Marc Bitzer.
Whirlpool delivered the slowest revenue growth of the whole group. The stock is down 27.7% since reporting and currently trades at $93.53.
Read our full report on Whirlpool here, it’s free.
Best Q4: LSI (NASDAQ:LYTS)
Enhancing commercial environments, LSI (NASDAQ:LYTS) provides lighting and display solutions for businesses and retailers.
LSI reported revenues of $147.7 million, up 35.5% year on year, outperforming analysts’ expectations by 14.3%. The business had an incredible quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
LSI scored the biggest analyst estimates beat and fastest revenue growth among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 11.2% since reporting. It currently trades at $17.58.
Is now the time to buy LSI? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Methode Electronics (NYSE:MEI)
Founded in 1946, Methode Electronics (NYSE:MEI) is a global supplier of custom-engineered solutions for Original Equipment Manufacturers (OEMs).
Methode Electronics reported revenues of $239.9 million, down 7.6% year on year, falling short of analysts’ expectations by 8.9%. It was a disappointing quarter as it posted revenue guidance for next quarter missing analysts’ expectations.
Methode Electronics delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 31.3% since the results and currently trades at $6.75.
Read our full analysis of Methode Electronics’s results here.
Acuity Brands (NYSE:AYI)
One of the pioneers of smart lights, Acuity (NYSE:AYI) designs and manufactures light fixtures and building management systems used in various industries.
Acuity Brands reported revenues of $951.6 million, up 1.8% year on year. This result lagged analysts' expectations by 0.6%. Aside from that, it was a mixed quarter as it also recorded a decent beat of analysts’ adjusted operating income estimates but a slight miss of analysts’ organic revenue estimates.
The stock is down 10.9% since reporting and currently trades at $271.28.
Read our full, actionable report on Acuity Brands here, it’s free.
Sanmina (NASDAQ:SANM)
Founded in 1980, Sanmina (NASDAQ:SANM) is an electronics manufacturing services company offering end-to-end solutions for various industries.
Sanmina reported revenues of $2.01 billion, up 7% year on year. This number beat analysts’ expectations by 1.5%. More broadly, it was a mixed quarter as it also logged a decent beat of analysts’ EPS estimates.
The stock is flat since reporting and currently trades at $78.92.
Read our full, actionable report on Sanmina here, it’s free.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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