As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the tech hardware & electronics industry, including TD SYNNEX (NYSE:SNX) and its peers.
Tech hardware and electronics companies will be buoyed by the increasing complexity of IT ecosystems, rising cloud adoption, and demand for cybersecurity solutions. Enterprises are less likely than ever to embark on these complicated journeys solo, and companies in the sector boast expertise and scale in these areas. However, cloud migration also means less need for hardware itself, which could dent demand and hurt margins. Additionally, planning for potentially supply chain disruptions is ongoing, as the COVID-19 pandemic showed how damaging a pause in global trade could be in areas like semiconductor procurement.
The 4 tech hardware & electronics stocks we track reported an exceptional Q3. As a group, revenues beat analysts’ consensus estimates by 6.3% while next quarter’s revenue guidance was 0.8% above.
While some tech hardware & electronics stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.4% since the latest earnings results.
Serving as the crucial middleman in the technology supply chain, TD SYNNEX (NYSE:SNX) is a global technology distributor that connects thousands of IT manufacturers with resellers, helping businesses access hardware, software, and technology solutions.
TD SYNNEX reported revenues of $15.65 billion, up 6.6% year on year. This print exceeded analysts’ expectations by 3.5%. Overall, it was a stunning quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EPS guidance for next quarter estimates.
“Our third quarter non-GAAP gross billings and diluted earnings per share established new records for our company” said Patrick Zammit, CEO of TD SYNNEX.
TD SYNNEX Total Revenue
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $151.16.
With over 90 years of connecting the world’s technologies, Amphenol (NYSE:APH) designs and manufactures connectors, cables, sensors, and interconnect systems that enable electrical and electronic connections across virtually every industry.
Amphenol reported revenues of $6.19 billion, up 53.4% year on year, outperforming analysts’ expectations by 10.9%. The business had an incredible quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EPS guidance for next quarter estimates.
Amphenol Total Revenue
Amphenol pulled off the biggest analyst estimates beat, fastest revenue growth, and highest full-year guidance raise among its peers. The market seems content with the results as the stock is up 3.5% since reporting. It currently trades at $128.83.
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 $1.06 billion, flat year on year, exceeding analysts’ expectations by 1.1%. It may have had the worst quarter among its peers, but its results were still good as it also locked in a beat of analysts’ EPS estimates and revenue guidance for next quarter beating analysts’ expectations.
Plexus delivered the weakest performance against analyst estimates and slowest revenue growth in the group. The stock is flat since the results and currently trades at $144.50.
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 $8.25 billion, up 18.5% year on year. This number topped analysts’ expectations by 9.5%. It was an exceptional quarter as it also produced an impressive beat of analysts’ EPS guidance for next quarter estimates and a solid beat of analysts’ revenue estimates.
Jabil had the weakest full-year guidance update among its peers. The stock is down 12.9% since reporting and currently trades at $196.32.
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.
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.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
The non-profit organization AI HOUSE has announced the start of registration for the Deep Tech Accelerator: Hardware Edition for early-stage startups...
