Littelfuse (NASDAQ:LFUS) Issues Earnings Results, Beats Expectations By $0.82 EPS

Littelfuse (NASDAQ:LFUS) released its earnings results on Wednesday. The technology company reported $5.79 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.97 by $0.82, FiscalAI reports. Littelfuse had a positive return on equity of 13.02% and a negative net margin of 0.31%. The company had revenue of $795.20 million for the quarter, compared to analysts’ expectations of $792.49 million. During the same quarter in the previous year, the firm posted $2.77 EPS. The firm’s quarterly revenue was up 22.7% on a year-over-year basis.

Here are the key takeaways from Littelfuse’s conference call:

• Record third-quarter performance: Net sales reached $767 million, organic revenue growth accelerated to 22%, adjusted EPS rose 96% to a record $5.79, and free cash flow increased 64% year over year.
• Demand was broad-based across data centers, grid and utility infrastructure, diversified industrials, commercial vehicles, and aerospace and defense. Record bookings, a book-to-bill ratio well above 1.0, and strong backlog support continued momentum into 2027.
• Electronics margins expanded 910 basis points to 33.1% excluding the Dortmund fee, while Transportation and Industrial margins also improved. Management cited volume leverage, favorable mix and pricing, plus power-semiconductor portfolio and footprint optimization.
• Fourth-quarter sales guidance of $750 million to $770 million implies approximately 28% year-over-year growth at the midpoint, with adjusted EPS guidance of $5.05 to $5.25. Basler is outperforming initial expectations, with full-year sales now projected at $135 million to $140 million and accretion of approximately $0.25 to $0.30.
• The Dortmund contract amendment reduced reported third-quarter semiconductor sales by $28.5 million, while passenger-vehicle sales declined 5% because of lower global auto production and planned exits from legacy, lower-margin sensor lines.

Littelfuse Trading Up 6.3%

LFUS stock traded up $24.44 during midday trading on Thursday, hitting $411.59. The stock had a trading volume of 93,642 shares, compared to its average volume of 286,919. The company’s 50-day moving average price is $410.20 and its 200 day moving average price is $397.66. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.76 and a quick ratio of 2.00. The firm has a market cap of $10.45 billion, a PE ratio of -823.17, a price-to-earnings-growth ratio of 1.86 and a beta of 1.48. Littelfuse has a 12-month low of $233.36 and a 12-month high of $500.57.

Littelfuse Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, December 3rd. Shareholders of record on Thursday, November 19th will be paid a $0.80 dividend. This represents a $3.20 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend is Thursday, November 19th. Littelfuse’s payout ratio is presently -640.00%.

Key Headlines Impacting Littelfuse

Here are the key news stories impacting Littelfuse this week:

• Positive Sentiment: Adjusted EPS beat expectations: Littelfuse reported quarterly adjusted earnings of $5.79 per share, above the $4.97 consensus estimate and up sharply from $2.77 a year earlier. Littelfuse Beats Q3 Earnings Estimates
• Positive Sentiment: Record sales and profit growth: Third-quarter net sales reached approximately $766.7 million, up 22.7% year over year, while GAAP net income rose to $115.4 million from $69.5 million. Operating margin was 20.0%, and free cash flow totaled $215.7 million. Littelfuse Q3 Financial Results
• Positive Sentiment: Constructive outlook: Management forecast fourth-quarter sales of $750 million to $770 million and adjusted diluted EPS of $5.05 to $5.25. The company also reaffirmed its long-term targets of $4.5 billion in revenue and $1.1 billion in adjusted EBITDA by 2030. Littelfuse Outlook and 2030 Targets
• Positive Sentiment: Analyst support: Needham reaffirmed its “Buy” rating and set a $520 price target, implying substantial upside from recent trading levels. Needham Littelfuse Rating
• Neutral Sentiment: Dividend maintained: Littelfuse declared a quarterly dividend of $0.80 per share, payable December 3 to shareholders of record November 19. The annualized dividend is $3.20, representing an approximate 0.8% yield. Littelfuse Dividend Announcement
• Negative Sentiment: Revenue missed some estimates: Reported sales of $766.7 million were below FactSet’s $792.5 million estimate, partly reflecting a $28.5 million contract-amendment fee recorded as a reduction to semiconductor revenue. This tempered the otherwise strong earnings report. Littelfuse Q3 Revenue Report

Analyst Ratings Changes

A number of equities analysts have recently issued reports on the stock. Oppenheimer reiterated an “outperform” rating on shares of Littelfuse in a report on Thursday. Zacks Research lowered Littelfuse from a “strong-buy” rating to a “hold” rating in a report on Monday, July 13th. Needham & Company LLC reaffirmed a “buy” rating and set a $520.00 price target on shares of Littelfuse in a research note on Wednesday. Finally, Weiss Ratings restated a “hold (c-)” rating on shares of Littelfuse in a report on Wednesday. Four investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $465.83.

About Littelfuse

Littelfuse, Inc is a diversified industrial technology company that develops and manufactures products designed to protect, control and sense electrical energy. Its portfolio includes fuses and other circuit-protection devices, power semiconductor products, relays, switches, sensors and related electronic components.

The company serves customers in the automotive, commercial vehicle, industrial, electronics, energy and communications markets. Its products are used in applications such as vehicle electrification, battery systems, industrial equipment, power distribution, renewable energy systems, data infrastructure and consumer electronics.