Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Thermon (NYSE: THR) and its peers.

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 very strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.8% while next quarter’s revenue guidance was 1.2% below.

While some electrical systems stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.9% since the latest earnings results.

Best Q3: Thermon (NYSE: THR)

Creating the first packaged tracing systems, Thermon (NYSE: THR) is a leading provider of engineered industrial process heating solutions for process industries.

Thermon reported revenues of $131.7 million, up 14.9% year on year. This print exceeded analysts’ expectations by 10.3%. Overall, it was a stunning quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Thermon achieved the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 27% since reporting and currently trades at $37.34.

Is now the time to buy Thermon? Access our full analysis of the earnings results here, it’s free for active Edge members.

Vertiv (NYSE: VRT)

Formerly part of Emerson Electric, Vertiv (NYSE: VRT) manufactures and services infrastructure technology products for data centers and communication networks.

Vertiv reported revenues of $2.68 billion, up 29% year on year, outperforming analysts’ expectations by 3.4%. The business had an exceptional quarter with an impressive beat of analysts’ organic revenue estimates and a beat of analysts’ EPS estimates.

Vertiv delivered the fastest revenue growth among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 13.4% since reporting. It currently trades at $151.33.

Is now the time to buy Vertiv? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Atkore (NYSE: ATKR)

Protecting the things that power our world, Atkore (NYSE: ATKR) designs and manufactures electrical safety products.

Atkore reported revenues of $752 million, down 4.6% year on year, exceeding analysts’ expectations by 2.5%. Still, it was a slower quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.

As expected, the stock is down 4% since the results and currently trades at $63.86.

Read our full analysis of Atkore’s results here.

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 $246.9 million, down 15.6% year on year. This number topped analysts’ expectations by 3.9%. Overall, it was a very strong quarter as it also put up an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ revenue estimates.

Methode Electronics had the slowest revenue growth and weakest full-year guidance update among its peers. The stock is down 23.4% since reporting and currently trades at $6.66.

Read our full, actionable report on Methode Electronics here, it’s free for active Edge members.

Hubbell (NYSE: HUBB)

A respected player in the electrical segment, Hubbell (NYSE: HUBB) manufactures electronic products for the construction, industrial, utility, and telecommunications markets.

Hubbell reported revenues of $1.50 billion, up 4.1% year on year. This print came in 1.6% below analysts' expectations. It was a slower quarter as it also recorded a miss of analysts’ revenue estimates and a miss of analysts’ organic revenue estimates.

Hubbell had the weakest performance against analyst estimates among its peers. The stock is flat since reporting and currently trades at $429.89.

Read our full, actionable report on Hubbell here, it’s free for active Edge members.

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.

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