Littlefuse, Inc. designs and manufactures circuit protection devices for the auto, electronic and electrical markets in the Americas, Europe and Asia. The company was founded in 1927 and has a market cap of $1.4 billion.
Littlefuse has been pumping out big gains in 2011, helped by another strong from early May that came in ahead of expectations.
Revenue for the period was up 16% from last year to $167 million. Earnings also looked good at $1.08, 2% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 7% over the last four quarters.
Although the strong top line helped drive the quarter, the company noted that eclipsing a 20% operating margin in the traditionally weak first quarter was also a big boost.
Littlefuse's recent earnings momentum has enabled it to strengthen its balance sheet, with cash and short-term investments up $55 million from last year to $132 million. Total debt was up $15 to a still marginal $75 million.
We saw some pretty solid movement in estimates off the good quarter, with the current year up 55 cents to $4.53.
But in spite of the gains, the valuation still looks solid, with a forward P/E of 13X a discount to the industry average of 14X.
On the chart, LFUS recently rebounded from a key long-term trend line. The 52-week high is $66.38, take a look below.
Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.
LITTELFUSE INC (LFUS): Free Stock Analysis Report
Zacks Investment Research
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