Q1 2024 Earnings Summary
Reported on May 1, 2024 (After Market Close)
Pre-Earnings Price$233.35Last close (May 1, 2024)
Post-Earnings Price$235.59Open (May 2, 2024)
Price Change
$2.24(+0.96%)
- Littelfuse's passive electronics business has a book-to-bill ratio of approximately 1.1—the first positive ratio in seven quarters—indicating that the bottom of the inventory destocking cycle has been reached and suggesting an upcoming inflection point for sales growth.
- The company has maintained stable pricing with sticky price gains from previous years, demonstrating strong pricing power and margin resilience. Additionally, they are about 85% through inventory reductions in electronics distribution channels, which positions them for sales gains even if end-market demand remains muted.
- Cost reduction initiatives, product line optimization, and operational improvements have led to margin expansion, particularly in the Transportation segment, where operating margins improved to 9.5%. Littelfuse expects high single-digit margins to continue, supporting overall profitability growth.
- Softening industrial demand and ongoing weakness in consumer applications are expected to impact semiconductor sales through the next couple of quarters, potentially leading to lower revenues in the Electronics segment.
- The company is only about 85% of the way through inventory burns in their electronics channel, indicating that inventory reductions will continue to dampen sales in the near term.
- Manufacturing constraints and additional costs in the Industrial segment impacted first quarter margins, and some of these issues are expected to continue into the second quarter, possibly affecting profitability.
Research analysts covering LITTELFUSE INC /DE.