Financial Data and Key Metrics Changes - In Q4 2024, sales reached $149.9 million, up from $140 million in Q4 2023. Full-year 2024 sales totaled $535 million, down from $640 million in 2023 [35] - Gross margin improved to 37.5% in Q4 2024 from 36.6% in Q4 2023, with a full-year increase of 410 basis points compared to 2023 [36] - Selling, general, and administrative (SG&A) expenses for Q4 2024 were $34.8 million, up 9.9% from $24.9 million in Q4 2023 [47] Business Line Data and Key Metrics Changes - Power solutions and protection products sales in Q4 2024 were $78.1 million, a 13.2% increase from Q4 2023, primarily due to Enercon's contribution of $20.8 million [37] - Connectivity solutions group sales were $52.5 million in Q4 2024, a 4% increase compared to Q4 2023, with full-year sales reaching $220 million, up almost 5% from 2023 [40] - Magnetic solutions group sales declined by 6% from Q4 2023 to $19.2 million, resulting in full-year sales of $58.9 million compared to $115 million in 2023 [44] Market Data and Key Metrics Changes - The consumer end market continues to struggle, with expectations of persistent challenges through much of 2025 due to prior trade restrictions on a supplier in China [23] - Distribution, networking, and industrial markets are showing signs of recovery, with expectations for improvement in 2025 compared to 2024 [23] Company Strategy and Development Direction - The company is focused on future growth and improved cost controls, with successful facility consolidations leading to significant cost savings [9][12] - The acquisition of Enercon is expected to enhance the company's position in mission-critical components for harsh environments, with anticipated revenue growth from this segment [10][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2025, citing favorable trends in AI, defense, and space as potential growth areas [21] - The company expects to see improvements in various markets, with magnetics anticipated to be the largest percentage grower [29] Other Important Information - The company closed the year with $69 million in cash and securities, down from $127 million at the end of 2023, primarily due to the Enercon acquisition [49] - The outstanding debt increased to $287.5 million, largely due to new borrowings related to the Enercon acquisition [50] Q&A Session Summary Question: Can you connect the dots from third-quarter orders momentum for PSP and Magnetics? - Management noted that Magnetics is seasonal, with Q2 and Q3 being the strongest quarters, while Power saw robust pull-ins due to anticipated tariffs [62] Question: What is the outlook for PSP in 2025? - Management indicated a flattish outlook for PSP, impacted by the Chinese supplier and pull-ins in Q4 2024 [66] Question: How much of the Q1 sales guide is attributable to Enercon? - Management stated that PSP would be down year-over-year in Q1 2025, with Enercon being additive to the overall sales [72] Question: What are the cross-selling opportunities with Enercon? - Management expects limited cross-selling opportunities in 2025 due to the slow-moving nature of the defense sector [74] Question: What is the impact of AI on revenue? - AI is expected to significantly benefit the power group, with an estimated $7 million in revenue from AI applications in 2024 [101] Question: What is the status of destocking at major distributors? - Management reported that a major distributor indicated they hit bottom in January, with expectations for improvement [103] Question: How are global tariffs impacting the business? - Approximately 12% to 13% of 2024 revenue was subject to tariffs, with ongoing efforts to manage costs and pass on increases to customers [130] Question: What is the M&A capacity post-Enercon acquisition? - Management remains open to selective M&A opportunities, focusing on quality and size [135]

Core Insights - Bel Fuse reported revenue of $149.86 million for the quarter ended December 2024, marking a year-over-year increase of 7% [1] - The EPS for the same period was -$0.14, a significant decline from $1.37 a year ago, indicating a negative EPS surprise of -118.18% compared to the consensus estimate of $0.77 [1] - The reported revenue exceeded the Zacks Consensus Estimate of $133.3 million by 12.42% [1] Financial Performance Metrics - Sales in Connectivity Solutions reached $52.55 million, slightly above the estimated $52.30 million [4] - Sales in Power Solutions and Protection were reported at $78.07 million, significantly higher than the average estimate of $59.97 million [4] - Sales in Magnetic Solutions totaled $19.24 million, falling short of the estimated $21.12 million [4] Stock Performance - Bel Fuse shares have returned +2.9% over the past month, compared to a +4.7% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Company Performance - Bel Fuse reported a quarterly loss of $0.14 per share, significantly below the Zacks Consensus Estimate of $0.77, and a decline from earnings of $1.37 per share a year ago, representing an earnings surprise of -118.18% [1] - The company posted revenues of $149.86 million for the quarter ended December 2024, exceeding the Zacks Consensus Estimate by 12.42%, and an increase from year-ago revenues of $140.01 million [2] - Over the last four quarters, Bel Fuse has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times as well [2] Stock Outlook - The immediate price movement of Bel Fuse's stock will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - Bel Fuse shares have underperformed the market, losing about 0.2% since the beginning of the year compared to the S&P 500's gain of 4% [3] - The current consensus EPS estimate for the coming quarter is $1 on $152 million in revenues, and $5.65 on $654 million in revenues for the current fiscal year [7] Industry Context - The Zacks Industry Rank for Electronics - Miscellaneous Products is currently in the bottom 45% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5]

Financial Performance - Net sales for the full year 2024 were $534.8 million, down 19.7% from $639.8 million in 2023, excluding Enercon's contribution[3] - In Q4 2024, net sales were $149.9 million, an increase from $140.0 million in Q4 2023, but organic sales decreased by 7.8% when excluding Enercon's $20.8 million contribution[8] - GAAP net loss attributable to Bel shareholders in Q4 2024 was $1.8 million, compared to a net income of $12.0 million in Q4 2023[8] - Non-GAAP net earnings attributable to Bel shareholders for the full year 2024 were $72.1 million, down from $89.6 million in 2023[8] - Adjusted EBITDA for the full year 2024 was $101.9 million, representing 19.0% of sales, a decrease from $116.8 million or 18.3% of sales in 2023[8] - GAAP net sales for Q4 2024 were $149,859 thousand, an increase from $140,010 thousand in Q4 2023, while year-end GAAP net sales decreased to $534,792 thousand from $639,813 thousand[30] - Non-GAAP adjusted net sales for Q4 2024 were $149,859 thousand, compared to $139,585 thousand in Q4 2023, with year-end adjusted net sales at $534,735 thousand, up from $624,963 thousand[30] - GAAP net earnings for Q4 2024 were $6,432 thousand, down from $12,036 thousand in Q4 2023, and year-end net earnings decreased to $49,192 thousand from $73,831 thousand[30] - Non-GAAP operating income for Q4 2024 was $24,629 thousand, slightly up from $23,901 thousand in Q4 2023, while year-end non-GAAP operating income decreased to $85,417 thousand from $103,512 thousand[30] - Adjusted EBITDA for Q4 2024 was $30,327 thousand, compared to $27,251 thousand in Q4 2023, with year-end adjusted EBITDA at $101,874 thousand, down from $116,824 thousand[30] Market and Operational Developments - The acquisition of Enercon, completed in Q4 2024, is expected to enhance scale and diversity, making aerospace and defense Bel's largest end market[5] - The company initiated two facility consolidation projects in 2024 and hired a Global Head of Sales to enhance operational efficiencies and drive growth[5] - Management expressed optimism for 2025, anticipating a slow and steady rebound in demand from networking and distribution partners[6] Sales and Revenue Breakdown - Power Solutions and Protection sales decreased by 21.8% to $245,551 thousand in FY 2024 from $314,105 thousand in FY 2023[28] - Connectivity Solutions sales increased by 4.7% to $220,370 thousand in FY 2024 from $210,572 thousand in FY 2023[28] Tax and Financial Metrics - The effective tax rate for FY 2024 was 20.4%, up from 11.4% in FY 2023[20] - The provision for income taxes for Q4 2024 was $953 thousand, compared to $1,463 thousand in Q4 2023, reflecting a decrease in tax expenses[30] Assets and Liabilities - Total assets increased significantly to $949,789 thousand in 2024 from $571,631 thousand in 2023[22] - Cash and cash equivalents decreased to $68,253 thousand at the end of 2024 from $89,371 thousand at the end of 2023[24] - Total liabilities rose to $508,627 thousand in 2024, compared to $231,073 thousand in 2023[22] Costs and Expenses - Research and development costs increased to $6,934 thousand in Q4 2024, up from $5,966 thousand in Q4 2023[20] - Interest expense for Q4 2024 was $2,815 thousand, significantly higher than $448 thousand in Q4 2023, indicating increased borrowing costs[30] - Restructuring charges for Q4 2024 amounted to $1,669 thousand, down from $3,808 thousand in Q4 2023, while acquisition-related costs were $8,592 thousand in Q4 2024[30] - Restructuring charges for the year ended December 31, 2024, amounted to $3,459 million, compared to $10,114 million in 2023, a reduction of 65.8%[35] - Acquisition-related costs for the year ended December 31, 2024, were $12,884 million, while there were no such costs reported in 2023[35] Earnings Per Share and Non-GAAP Measures - The earnings per share (EPS) for the three months ended December 31, 2024, was $0.14, down from $0.90 in the same period of 2023, reflecting a decrease of 84.4%[35] - Non-GAAP measures for the year ended December 31, 2024, showed net earnings of $90,919 million, compared to $103,350 million in 2023, indicating a decline of 12.0%[36] - The EPS for the year ended December 31, 2024, was $5.47, down from $6.72 in 2023, a decrease of 18.6%[36] - The company has included Non-GAAP financial measures such as Non-GAAP adjusted net sales and Non-GAAP EPS to aid in comparisons with other periods[37] - The company modified its Non-GAAP financial measures to exclude stock-based compensation and amortization of intangibles, enhancing investor insight into operational performance[32] - The use of Non-GAAP measures is intended to provide additional insight into operational performance and assist in trend analysis and budgeting[37] Foreign Currency and Other Losses - Unrealized foreign currency exchange losses for the year ended December 31, 2024, were $1,455 million, compared to $831 million in 2023, indicating an increase of 75.0%[36] - The company reported a loss on liquidation of a foreign subsidiary amounting to $2,724 million for the year ended December 31, 2024, compared to $2,043 million in 2023, an increase of 33.4%[35] - The total revenue for the year ended December 31, 2024, was $61,808 million, a decrease from $73,831 million in 2023, representing a decline of 16.3%[35]

Core Viewpoint - The comparison between Bel Fuse (BELFB) and Rockwell Automation (ROK) indicates that BELFB presents a better value opportunity for investors at this time [1]. Group 1: Zacks Rank and Analyst Outlook - Bel Fuse has a Zacks Rank of 2 (Buy), while Rockwell Automation has a Zacks Rank of 3 (Hold), suggesting that BELFB's earnings estimate revision activity is more favorable [3]. - The Zacks Rank emphasizes companies with positive estimate revision trends, which is a key factor for investors [2]. Group 2: Valuation Metrics - BELFB has a forward P/E ratio of 14.67, significantly lower than ROK's forward P/E of 29.95, indicating that BELFB may be undervalued [5]. - The PEG ratio for BELFB is 0.98, while ROK's PEG ratio is 3, suggesting that BELFB has a better expected earnings growth relative to its price [5]. - BELFB's P/B ratio is 2.83 compared to ROK's P/B of 8.61, further highlighting BELFB's relative valuation advantage [6]. Group 3: Value Grades - BELFB has earned a Value grade of A, while ROK has a Value grade of D, indicating a stronger value proposition for BELFB [6].

Core Viewpoint - Investors in the Electronics - Miscellaneous Products sector should consider Bel Fuse (BELFB) and Hoya Corp. (HOCPY) for potential value opportunities, with BELFB currently presenting a better value option based on various financial metrics [1]. Valuation Metrics - Bel Fuse has a Zacks Rank of 2 (Buy), indicating a more favorable earnings estimate revision trend compared to Hoya Corp., which has a Zacks Rank of 3 (Hold) [3]. - BELFB's forward P/E ratio is 13.85, significantly lower than HOCPY's forward P/E of 35.08, suggesting that BELFB may be undervalued relative to its earnings potential [5]. - The PEG ratio for BELFB is 0.92, while HOCPY's PEG ratio is 2.48, indicating that BELFB's expected earnings growth is more favorable compared to its price [5]. - BELFB has a P/B ratio of 2.67, compared to HOCPY's P/B of 6.99, further supporting the argument that BELFB is a more attractive investment based on its market value relative to book value [6]. - Overall, BELFB holds a Value grade of A, while HOCPY has a Value grade of F, highlighting the superior valuation metrics of BELFB [6].

Core Viewpoint - Growth investors seek stocks with above-average financial growth, but identifying such stocks can be challenging due to inherent risks and volatility [1] Group 1: Company Overview - Bel Fuse (BELFB) is currently recommended as a cutting-edge growth stock by the Zacks Growth Style Score system, which evaluates a company's real growth prospects [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong potential for growth investors [2][10] Group 2: Earnings Growth - Bel Fuse has a historical EPS growth rate of 129%, with projected EPS growth of 35.3% this year, significantly surpassing the industry average of 22% [5] - Earnings growth is a critical factor for growth investors, as it often indicates strong future stock price gains [4] Group 3: Cash Flow Growth - The year-over-year cash flow growth for Bel Fuse is currently 33%, which is notably higher than the industry average of -6.6% [6] - The company's annualized cash flow growth rate over the past 3-5 years is 19.9%, compared to the industry average of 4.1%, highlighting its strong cash flow performance [7] Group 4: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Bel Fuse, with the Zacks Consensus Estimate for the current year increasing by 28.7% over the past month [8] - Positive earnings estimate revisions are correlated with near-term stock price movements, making this a favorable indicator for investors [8] Group 5: Investment Potential - Bel Fuse has achieved a Growth Score of A and a Zacks Rank of 2 due to its strong earnings estimate revisions, positioning it as a potential outperformer for growth investors [10]

Core Insights - The article compares Bel Fuse (BELFB) and Garmin (GRMN) as potential investment opportunities, highlighting BELFB as the superior value option based on various valuation metrics [6][9]. Valuation Metrics - BELFB has a P/B ratio of 2.78, while GRMN has a P/B ratio of 5.36, indicating that BELFB is more undervalued relative to its book value [2]. - BELFB's forward P/E ratio is 19.51 compared to GRMN's 29.87, suggesting that BELFB is more attractively priced in terms of earnings [8]. - The PEG ratio for BELFB is 1.30, while GRMN's PEG ratio is 1.38, indicating that BELFB offers better value when considering expected earnings growth [8]. Earnings Outlook - Both BELFB and GRMN currently hold a Zacks Rank of 1 (Strong Buy), reflecting positive earnings estimate revisions and improving earnings outlooks [3][9]. - BELFB has earned a Value grade of B, while GRMN has a Value grade of D, further supporting the argument for BELFB as the better value investment [5]. Investment Strategy - The article emphasizes the importance of traditional valuation metrics such as P/E, P/S, and cash flow per share in identifying undervalued companies [4][7].

Group 1: Stock Recommendations - USANA has a price-to-earnings ratio (P/E) of 14.57, significantly lower than the S&P 500's P/E of 24.88, and holds a Value Score of A [1] - Bel Fuse has a price-to-earnings ratio (P/E) of 19.51, also lower than the S&P 500's P/E of 24.88, and possesses a Value Score of B [2] Group 2: Earnings Estimates - Bel Fuse Inc. (BELFB) has seen the Zacks Consensus Estimate for its current year earnings increase by 4.8% over the last 60 days [3] - USANA Health Sciences, Inc. (USNA) has experienced a 13.8% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [4]

WEST ORANGE, N.J., Dec. 02, 2024 (GLOBE NEWSWIRE) -- Bel Fuse Inc. (Nasdaq: BELFA and BELFB), a leading global manufacturer of products that power, protect and connect electronic circuits, today announced its investor conference schedule for December 2024: Oppenheimer Midwest Virtual SummitFarouq Tuweiq, CFOLynn Hutkin, VP Financial Reporting & Investor RelationsWednesday, December 11, 2024Conducting meetings throughout the day Northland Virtual Growth Conference Farouq Tuweiq, CFOLynn Hutkin, VP Financial ...