Q2 2024 Bel Fuse Inc Earnings Call Transcript
Key Points
- Bel Fuse Inc (BELFA) achieved sales of $133 million, hitting the high end of their forecast range.
- Gross margins improved significantly to 40.1% in Q2 2024 from 32.9% in Q2 2023.
- The Connectivity Solutions Group saw a 5.4% increase in sales year-over-year, driven by distribution channel growth.
- The company successfully reduced inventory levels by $8.6 million from year-end, reflecting efficient inventory management.
- Bel Fuse Inc (BELFA) continued its $25 million stock buyback program, purchasing $14.2 million worth of shares by June 30, 2024.
- Overall sales declined by 21.1% compared to Q2 2023, primarily due to lower sales in the Power and Magnetic segments.
- Power Solutions and Protection sales dropped by 32.8% year-over-year, mainly due to reduced sales in networking and consumer applications.
- Magnetic Solutions Group sales decreased by 37.3% from Q2 2023, largely due to lower shipments to a major networking customer.
- The company anticipates a slight downward shift in Q3 2024 sales, projecting a range of $118 million to $126 million, down from $159 million in Q3 2023.
- Trade restrictions on a China-based supplier are expected to impact Q3 2024 sales by approximately $4 million, adding uncertainty to future performance.
Good morning and welcome to the Bel Fuse second quarter 2024 earnings call. (Operator Instructions) As a reminder, this call is being recorded.
I would now like to turn the call over to Jean Marie Young with Three Part Advisors. Please go ahead, Jean.
Thank you, and good morning, everyone. Before we begin, I'd like to remind everyone that during today's conference call, we will make statements relating to our business that will be considered forward-looking statements under federal securities laws.
That will be such statements regarding the company's expected operating and financial performance for future periods, including guidance for future periods in 2024 these statements are based on the company's current expectations and reflects the company's views only as of today and should not be considered representative of the company's views as of any subsequent date. The company disclaims any obligation to update any forward-looking statements or outlook.
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