Littelfuse Adjusted EPS Jumps 96% To A Record $5.79 On Data Center And Grid Demand
The circuit-protection maker guided fourth-quarter sales to $750 million to $770 million and adjusted EPS to $5.05 to $5.25.
Littelfuse, which makes fuses, relays, sensors and power semiconductors, posted record third-quarter net sales of $767 million and record adjusted earnings per share of $5.79, up 96% from a year earlier, the company said Wednesday in an 8-K. Sales came in after a $28.5 million one-time Dortmund contract amendment fee was booked as a reduction of semiconductor sales.
Profit outran sales
Organic growth contributed 22% to the quarter. GAAP diluted earnings per share were $4.49, up 62%, and adjusted EBITDA margin reached 28.4%, up 690 basis points (6.9 percentage points). The company calculates that margin on adjusted net sales that exclude the amendment fee.
Third-quarter operating cash flow was $230 million, up 57%, and free cash flow was $216 million, up 64%. For the first nine months, free cash flow was $409 million, up 66%.
CEO Greg Henderson said the company delivered "broad-based demand strength."
Industrial leads the segments
Industrial sales jumped 65% to $158 million. Organic growth was 27%, driven by data center, grid and utility infrastructure, HVAC, industrial automation and construction demand, and the Basler Electric acquisition added 38 points.
Electronics sales rose to $426 million, including the fee, with organic growth of 27%; passive products grew 30% organically and semiconductors 24%. Transportation grew 7% to $183 million, as commercial vehicle sales rose 20% organically and passenger vehicle sales fell 5%.
Littelfuse's business spans Electronics, Transportation and Industrial segments, sold through distributors, a direct sales force and manufacturers' representatives.
Fourth-quarter guidance and dividend
For the fourth quarter, the company expects net sales of $750 million to $770 million and adjusted EPS of $5.05 to $5.25, with an adjusted tax rate of about 24%. Henderson said the company expects approximately "+28% yr/yr revenue growth." The company's slides put the figure at 21% organic, with Basler adding 6%.
Littelfuse declared a quarterly dividend of $0.80 per share, payable December 3 to holders of record on November 19. A call to discuss results was set for 8:00 a.m. Central Time Wednesday.
Littelfuse's slides say it entered the fourth quarter with momentum after record third-quarter bookings.
Sources
- 8-K Filing — LITTELFUSE INC /DE (LFUS) — SEC EDGAR
- Exhibit q32026earningsreleaseex991.htm — LITTELFUSE INC /DE 8-K exhibit — SEC EDGAR
- Exhibit q32026slide1.htm — LITTELFUSE INC /DE 8-K exhibit — SEC EDGAR
