Bel Fuse Stock Gains On Q2 Volume Growth; $314M Backlog

  • Bel Fuse Inc BELFA reported second-quarter FY21 net sales growth of 14.5% year-on-year to $138.7 million, beating the analyst consensus of $128 million.
  • The gross margin contracted 110 bps to 24.7%, and the operating margin contracted 20 bps to 4.8%.
  • EPS of $0.64 beat the analyst consensus of $0.34.
  • The adjusted EBITDA margin contracted 100 bps to 8.4%.
  • Bel Fuse held $66.4 million in cash and equivalents at the end of Q2.
  • Backlog of $314 million on Jun. 30 represents over 100% growth from Dec. 31. Quarterly bookings of $212 million, was over double the order volume Y/Y.
  • The Q2 sales reflected a recovery in demand from key sectors served, mainly commercial aerospace, networking, military, e-Mobility, and industrial. 
  • Further, acquisitions of rms and EOS earlier in 2021 also contributed to the growth.
  • The closure of the modules design and technical support center in Maidstone, UK, during Q3 is likely to save $0.4 million in annual cost.
  • Price action: BELFA shares traded higher by 17.9% at $15.5 in the market session on the last check Friday.
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