Bel Fuse (BELFB) is set to release its third-quarter 2023 earnings on October 25th, and investors are eagerly awaiting the results. The company expects revenues to be between $157 million and $165 million for the quarter. However, analysts are predicting a decline of 11.11% in revenues compared to the year-ago quarter, with the consensus estimate currently at $158 million.
When it comes to earnings, Bel Fuse has consistently beaten the Zacks Consensus Estimate in the past four quarters, with an average surprise of 73.04%. But what can we expect this time around?
Factors at Play
Bel Fuse is likely to benefit from strong end customer demand in the third quarter of 2023. The company has seen increased adoption of its solutions in markets such as commercial air, military, and e-mobility. Additionally, the Magnetics segment is expected to show improved revenues in the upcoming quarter.
Furthermore, Bel Fuse has been working towards reducing its backlog, which declined by 20% in the second quarter of 2023. This is due to the easing of component availability and normalizing lead times. As a result, the company is expected to see an overall improvement in its financials.
During the third quarter, Bel Fuse announced the divestiture of its Stewart Czech business to PEI-Genesis as part of its strategic focus. This move allows the Connectivity Solutions group to concentrate on core product categories that align better with its long-term growth objectives.
What Our Model Says
According to the Zacks model, a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy), or #3 (Hold) increases the chances of an earnings beat. Unfortunately, Bel Fuse currently has an Earnings ESP of +0.00% and a Zacks Rank #3.
Other Stocks to Consider
If you’re looking for other investment options, consider companies like GoDaddy (GDDY), Cognizant Technology Solutions (CTSH), and Etsy (ETSY). These stocks have shown potential for beating earnings estimates in their upcoming releases.
GoDaddy, with an Earnings ESP of +14.09% and a Zacks Rank of 1, is set to report its third-quarter 2023 results on November 2. Cognizant Technology Solutions, with an Earnings ESP of +1.59% and a Zacks Rank #2, will report on November 1. Similarly, Etsy, with an Earnings ESP of +37.71% and a Zacks Rank #2, will also report on November 1.
To stay updated on upcoming earnings announcements, check out the Zacks Earnings Calendar.
Overall, Bel Fuse’s third-quarter earnings report will provide valuable insights into the company’s performance and growth prospects. Investors should pay close attention to the results and analyze the factors at play to make informed investment decisions.