Bel Fuse Q1-2024 – Sales Down, Profit Margin Up

Bel Fuse Inc. has released its preliminary financial results for the first quarter of 2024, revealing a few key highlights. The net sales for the quarter totaled $128.1 million, a decrease from the $172.3 million reported in the first quarter of 2023. However, the gross profit margin saw a significant increase to 37.5%, up from 31.1% in Q1-23. Additionally, the net earnings for the first quarter of 2024 amounted to $15.9 million, compared to $14.6 million in the same period last year.

The company also reported adjusted EBITDA of $24.5 million, representing 19.2% of sales, compared to $28.1 million, or 16.3% of sales, in the first quarter of 2023. Furthermore, Bel Fuse Inc. repurchased 109,000 shares of its stock at an aggregate cost of $6.3 million through March 31, 2024.

Daniel Bernstein, President and CEO of Bel Fuse Inc., expressed satisfaction with the first quarter results, noting a higher than anticipated level of profitability on lower sales volume from the same period in 2023. Bernstein highlighted the strong performance of the connectivity segment, particularly in commercial air and defense sales, as well as meaningful sales in the emerging space end market.

Farouq Tuweiq, the company's CFO, commented on the sustained gross margin percentage achieved during the quarter, attributing it to a favorable product mix, certain customer contract renewals, and cost savings from the facility consolidation and procurement efforts in 2023.

Looking ahead to the second quarter of 2024, the company provided sales and gross margin guidance, anticipating GAAP net sales to be in the range of $125 to $135 million, with gross margins in the range of 34-36%. Tuweiq emphasized the team's diligence in balancing the level of resources needed to support future growth while monitoring the status of the anticipated rebound.

Bel Fuse Inc. designs, manufactures, and markets products used in various industries, such as networking, telecommunications, computing, industrial, military, aerospace, transportation, and more.

The company has scheduled a conference call on Friday, April 26, 2024, at 8:30 a.m. ET to discuss these results. It will be broadcast live over the internet and available for replay for at least 30 days. The market has reacted to these announcements by moving the company's shares 0.5% to a price of $71.45. Check out the company's full 8-K submission here.

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