NASDAQ$BELFB

Bel Fuse Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported preliminary financial results with net loss due to COVID-19 impact and COLI policy loss, offset partially by CUI acquisition and government stimulus.

Bel Fuse Inc. reported a net loss of $(3.8) million for Q1 2020, impacted by COVID-19 related facility closures and supply chain disruptions, as well as a loss on company-owned life insurance policies. These factors were partially offset by the acquisition of CUI and stimulus funding from the Chinese government. Net sales decreased by 17.1% year-over-year to $104.0 million.

  • Net sales decreased by 17.1% year-over-year to $104.0 million.
  • Gross profit margin decreased to 24.2% from 24.5% in Q1 2019.
  • Operating loss was $(3.1) million, compared to an operating income of $3.4 million in Q1 2019.
  • CUI acquisition contributed $8.2 million in sales and $865,000 operating income.

Headline financials

Total Revenue

$104M

Previous: $125M-17.1%
EPS (adj)

-$0.29

Previous: $0.22-231.8%
Gross Profit Margin

24.2%

Previous: 24.5%-1.2%
Capital Expenditures

-$1.83M

Previous: -$2.44M+24.8%
Free Cash Flow

-$5.64M

Previous: -$1.31M-331.5%
Net Income

-$3.8M

Previous: $1.13M-436.3%
Operating Income

-$3.14M

Previous: $2.82M-211.4%
Gross Profit

$25.1M

Previous: $23.6M+6.6%
Cash & Equivalents

$68.4M

Previous: $43.2M+58.4%
Total Assets

$446M

Previous: $454M-1.9%

Revenue & EPS history

Bel Fuse · Revenue · Quarterly

$104M

Q1 2020-17.1%vs Q1 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Forward guidance

The company anticipates an improvement in sales and financial results in the second quarter as compared to the first quarter. However, beyond the second quarter, they have limited visibility due to the evolving COVID-19 environment.

Tailwinds

  • Orders received in Q1 2020 were the highest since Q3 2018, indicating excess inventory has been worked through.
  • Customers and distribution partners are starting to place replenishment orders again.
  • Acquisition of CUI in late 2019 was accretive to Bel's earnings during the first quarter.
  • CUI bookings during the first quarter were over $11 million, one of their highest booking quarters in history.
  • Bel's consolidated book-to-bill ratio was 1.3 for the first quarter.

Headwinds

  • Limited visibility beyond the second quarter due to the evolving COVID-19 environment.
  • Extended closure of facilities in China earlier in the quarter due to the outbreak of COVID-19.
  • Related impact to the supply chain.
  • Portion of scheduled shipments being deferred to the second quarter.
  • Company incurred additional indirect COVID-19 related costs, including operational inefficiencies and employee retention programs.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.7%

Avg return

Earnings day

+3.7%

Avg return

5 days after

+6.3%

Avg return

30 days after

48%

31 / 65 earnings

Positive

+19.5%

Q4 2021

Best reaction

-29.0%

Q2 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.0%+15.1%+6.2%
Q4 2025-6.6%-1.5%-13.3%
Q3 2025-1.3%+1.2%+1.0%
Q2 2025+16.2%+22.3%+28.8%
Q1 2025+0.3%-6.3%+3.3%
Q4 2024-2.1%+3.1%-10.4%
Q3 2024-0.3%-5.2%-2.2%
Q2 2024+4.1%+7.1%-4.6%
Q1 2024-2.9%-3.3%+13.2%
Q4 2023-20.3%-25.2%-17.1%
Q3 2023+18.8%+32.9%+38.3%
Q2 2023-7.1%-9.5%-16.1%
Q1 2023+12.7%+35.9%+57.7%
Q4 2022-12.0%-10.5%-12.5%
Q3 2022-3.8%+5.9%+23.4%
Q2 2022+15.0%+31.3%+43.2%
Q1 2022+5.2%+6.7%+4.4%
Q4 2021+19.5%+34.2%+67.0%
Q3 2021+14.7%+23.0%+4.4%
Q2 2021+13.8%+11.2%+18.5%
Q1 2021-7.7%-12.4%-24.3%
Q4 2020-4.6%+7.2%+24.2%
Q3 2020+16.5%+18.9%+45.5%
Q2 2020+5.2%+6.3%-3.6%
Q1 2020+9.0%+14.6%+25.6%
Q4 2019-21.7%-31.3%-53.8%
Q3 2019-4.0%-0.4%+10.5%
Q2 2019-29.0%-31.9%-33.3%
Q1 2019-3.6%-5.8%-26.6%
Q4 2018+11.6%-4.8%+3.8%
Q3 2018+12.5%+14.1%+2.3%
Q2 2018+9.0%+12.5%+32.9%
Q1 2018-2.6%-3.9%-5.1%
Q4 2017-1.5%-5.3%+0.8%
Q3 2017-14.5%-18.9%-12.3%
Q2 2017+7.5%+10.1%+0.2%
Q1 2017+0.0%-0.4%+9.2%
Q4 2016+0.0%-10.9%-20.5%
Q3 2016+4.6%+14.3%+21.8%
Q2 2016+2.6%+9.0%+20.4%
Q1 2016+0.3%
Q4 2015-3.7%
Q3 2015-3.8%
Q2 2015-1.1%
Q1 2015+1.0%
Q4 2014-0.2%
Q3 2014+0.3%
Q2 2014+0.0%
Q1 2014+2.3%
Q4 2013-1.4%
Q3 2013-1.0%
Q2 2013+1.5%
Q1 2013+0.0%
Q4 2012-5.5%
Q3 2012+0.1%
Q2 2012-1.7%
Q1 2012-1.5%
Q4 2011+0.6%
Q3 2011-0.6%
Q2 2011-4.1%
Q1 2011+2.3%
Q4 2010-1.0%
Q3 2010+6.5%
Q2 2010+1.1%
Q1 2010-2.4%

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