Bel Fuse (BELFB) to Report Q2 Earnings: What's in the Cards?
Bel Fuse BELFB is scheduled to release its second-quarter 2023 results on July 26.
For the quarter, Bel Fuse expects revenues between $162 million and $170 million.
The Zacks Consensus Estimate for second-quarter revenues is currently pegged at $166 million, suggesting a decline of 2.68% from the figure reported in the year-ago quarter.
The consensus mark for second-quarter earnings has remained unchanged at 96 cents per share in the past 30 days, indicating a decline of 30.43% from the figure reported in the year-ago quarter.
Bel Fuse Inc. Price and EPS Surprise
Bel Fuse Inc. price-eps-surprise | Bel Fuse Inc. Quote
Bel Fuse’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 113.05%.
Let’s see how things are shaping up for Bel Fuse prior to this announcement.
Factors at Play
Bel Fuse’s second-quarter 2023 results are expected to benefit from strength in end customer demand. It has been benefiting from the rising adoption in certain end markets, including commercial air, military and e-mobility.
The end customer demand for its magnetics products is expected to remain strong in the to-be-reported quarter. It expects to launch 1,000 new magnetic products through 2023, expanding its Signal and ICM product lines, to ensure continued alignment with its customers’ product development roadmaps.
The company is in the process of facility consolidation in China, which is being handled in stages and scheduled to be completed during third-quarter 2023. This is expected to benefit its Magnetics segment from a production efficiency standpoint.
The easing of component availability and normalizing lead times are expected to reduce overall backlog in the to-be-reported quarter. Its overall backlog declined by 10% sequentially to $510 million in first-quarter 2023.
Bel Fuse’s expanding product portfolio, increasing demand and favourable shift in product mix are expected to have bolstered its top-line growth in the second quarter of 2023. However, increased inventory levels and inflationary pressures are expected to have hurt its top-line growth in the to-be-reported quarter.
Key Quarter Developments
During the to-be-reported quarter, Bel Fuse announced the divestiture of Stewart Czech business to PEI-Genesis as part of its broader focus strategy.
This divestment allows the Connectivity Solutions group to focus on its core product categories serving customer end markets such as commercial air, defense, industrial and networking that better align to its long-term growth objectives.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Bel Fuse has an Earnings ESP of +0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few companies worth considering, as our model shows that these too have the right combination of elements to beat on earnings in their upcoming releases:
Autohome ATHM has an Earnings ESP of +7.61% and sports a Zacks Rank of 1, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Autohome shares have declined 4.4% year to date. ATHM is set to report its second-quarter 2023 results on July 27.
Meta Platforms META has an Earnings ESP of +5.89% and a Zacks Rank #2
Meta shares have gained 151.3% year to date. META is set to report its second-quarter 2023 results on July 26.
Intel INTC has an Earnings ESP of +19.64% and a Zacks Rank #2.
Intel shares have gained 26.2% year to date. INTC is set to report its second-quarter 2023 results on July 27.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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