Littelfuse (LFUS) Q3 earnings: what to expect

What happened

Littelfuse, an electronic component provider, will report quarterly results on Wednesday before market hours. Last quarter it reported revenues of $738.8 million, up 20.4% year on year, beating analysts' revenue, EBITDA and EPS estimates.

Confirmed

Global impact / market context

Investors will compare the new results with last quarter's strong beat. Analysts expect revenue to grow 26.5% year on year, so any shortfall could weaken confidence in the company's sales momentum and its history of exceeding Wall Street's expectations.

Analyst inference

Two electrical equipment peers have already reported. Bloom Energy grew revenue 138% year on year and beat estimates by 14.6%, but its shares traded down 11.7% after the results. Allegion grew revenue 9.6% and topped estimates by 3.3%, giving a mixed signal.

Analyst inference

What to watch

1. Watch whether Littelfuse revenue grows 26.5% year on year, the market's expectation for this quarter, compared with the 10.1% increase recorded in the same quarter last year. Confirmed
2. Watch whether Littelfuse repeats its pattern of beating analysts' EBITDA and EPS estimates, since a miss could challenge the view that the business will stay the course. Analyst inference
3. Watch how Littelfuse shares react to its results, given that peer Bloom Energy fell 11.7% despite a large revenue beat, showing strong numbers alone may not lift the stock. Analyst inference

Evidence

• stockstory.org