Please ensure Javascript is enabled for purposes of website accessibility

Why Shares of Littelfuse Popped Today

By Chris Neiger - Apr 29, 2020 at 3:03PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Despite COVID-19, the company's sales and earnings surpassed expectations.

What happened

Shares of Littelfuse (LFUS 1.65%), a global manufacturer of circuit protection products, spiked as much as 12% today after the company reported its first-quarter 2020 results. While the sales figures may not look great at first glance, investors focused their attention on the fact that Littelfuse outpaced Wall Street's estimates in the quarter.

As of 3:34 p.m. EDT on Wednesday, shares were up 10.4%.

Image of stock charts moving up and down.

Image source: Getty Images.

So what 

Littelfuse said revenue was down 15% year over year to $346.1 million, mainly due to slowing production and demand resulting from COVID-19. But investors were pleased to see that revenue still came in ahead of analysts' consensus estimate of $336.3 million. The company's electronics segment took the biggest hit in the quarter, with sales dropping 19%. Revenue from Littelfuse's automotive and industrial segments slid 8% and 2%, respectively. 

Investors were also happy to see that the company's adjusted earnings per share of $1.29 far outpaced analysts' consensus estimate of $0.97.

The company ended the quarter with $621 million in cash and $774 million in debt. Littelfuse's management said in its press release that the company has maintained a conservative financial position for years and expects "to come out stronger on the other side of this challenge."

Now what

The company estimated that sales would be down about 20% in the second quarter sequentially, and that its adjusted operating income could fall 45%. Littelfuse noted the effects of the ongoing pandemic as the reason for the declines. The company has also withdrawn its full-year guidance due to COVID-19.

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool recommends Littelfuse. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Littelfuse, Inc. Stock Quote
Littelfuse, Inc.
LFUS
$252.91 (1.65%) $4.11

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
400%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/14/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.