Littelfuse, Inc. Just Beat EPS By 15%: Here's What Analysts Think Will Happen Next

Littelfuse, Inc. (NASDAQ:LFUS) just released its latest quarterly results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 2.9% to hit US$558m. Littelfuse reported statutory earnings per share (EPS) US$1.82, which was a notable 15% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Littelfuse

Following last week's earnings report, Littelfuse's eight analysts are forecasting 2024 revenues to be US$2.22b, approximately in line with the last 12 months. Per-share earnings are expected to accumulate 5.0% to US$8.24. In the lead-up to this report, the analysts had been modelling revenues of US$2.22b and earnings per share (EPS) of US$8.23 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of US$283, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Littelfuse at US$300 per share, while the most bearish prices it at US$250. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Littelfuse is an easy business to forecast or the the analysts are all using similar assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 1.2% annualised decline to the end of 2024. That is a notable change from historical growth of 12% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 7.2% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Littelfuse is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Littelfuse's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$283, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Littelfuse going out to 2026, and you can see them free on our platform here..

Even so, be aware that Littelfuse is showing 2 warning signs in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com