Electronic system and device provider Bel Fuse (NASDAQ: BELFA) will be reporting earnings this Wednesday afternoon. Here’s what you need to know.
Bel Fuse beat analysts’ revenue expectations last quarter, reporting revenues of $178.5 million, up 17.2% year on year. It was an exceptional quarter for the company, with revenue guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Is Bel Fuse a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Bel Fuse’s revenue to grow 23.2% year on year, slowing from the 26.3% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Bel Fuse has a history of exceeding Wall Street’s expectations.
Looking at Bel Fuse’s peers in the electrical equipment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Allegion delivered year-on-year revenue growth of 12.7%, beating analysts’ expectations by 3.1%, and Teledyne reported revenues up 9.8%, topping estimates by 5.3%. Allegion traded up 9.6% following the results while Teledyne’s stock price was unchanged.
Read our full analysis of Allegion’s results here and Teledyne’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the electrical equipment stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.3% on average over the last month. Bel Fuse is down 17% during the same time and is heading into earnings with an average analyst price target of $322 (compared to the current share price of $226.25).
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