• Revenue: $567 million, down 7% year-over-year.

• GAAP Operating Margin: 15.5%.

• Adjusted Operating Margin: 15.9%.

• Adjusted EBITDA Margin: 21.7%, up 310 basis points sequentially.

• GAAP Diluted EPS: $2.32.

• Adjusted Diluted EPS: $2.71.

• Free Cash Flow: $65 million in the quarter; $157 million year-to-date.

• Cash on Hand: $630 million.

• Net Debt to EBITDA Leverage: 1.6 times.

• Capital Returned to Shareholders: $17 million via cash dividend in the quarter; $91 million year-to-date.

• Electronics Segment Sales: Down 12% year-over-year.

• Transportation Segment Sales: Down 3% year-over-year.

• Industrial Segment Sales: Increased 7% year-over-year.

• Fourth Quarter Sales Guidance: $510 million to $540 million.

• Fourth Quarter EPS Guidance: $1.90 to $2.10.

• Warning! GuruFocus has detected 6 Warning Sign with LFUS.

Release Date: October 30, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Littelfuse Inc (NASDAQ:LFUS) exceeded its sales and earnings guidance for the third quarter, demonstrating strong execution and resilience in a challenging environment.

• The company reported strong free cash flow and maintains a well-positioned balance sheet to support its long-term growth strategy.

• Littelfuse Inc (NASDAQ:LFUS) secured meaningful new business wins across various segments, including data centers, gaming, medical, and telecom applications.

• The company observed growth in its industrial segment, driven by strong demand in industrial safety, HVAC, and data center applications.

• Littelfuse Inc (NASDAQ:LFUS) continues to focus on operational excellence and cost reduction initiatives, contributing to margin improvements across its segments.

Negative Points

• The company observed cautious customer ordering patterns and challenging end market conditions, particularly in Europe and China.

• Littelfuse Inc (NASDAQ:LFUS) expects fourth-quarter sales to be sequentially lower due to typical seasonality and ongoing muted demand trends.

• The electronics segment experienced a decline in sales, particularly in semiconductor products, which were down 21% year-over-year.

• The transportation segment faced a 3% decline in sales, impacted by pruning actions and ongoing end market weakness.

• The industrial segment is experiencing continued soft demand trends, particularly in industrial equipment and factory automation applications.

Q & A Highlights

Q: Can you elaborate on the 4Q guidance assumptions for the electronics segment, particularly regarding seasonal factors and power semiconductor trends? A: We are experiencing two different dynamics in the electronics segment. For passives and protection semiconductors, channel partner inventories are healthy, and demand is stable, leading to normal seasonality in Q4. However, the power semiconductor segment, heavily tied to industrial applications, is facing challenges due to slowing industrial demand, particularly in Europe. We expect this softness to persist into 2025, with limited visibility on improvement due to geopolitical dynamics.