BELFB

New Facility Opening: Bel Fuse Inc. has opened a new manufacturing facility in Manesar, Gurugram, India, following its acquisition of Enercon, which will double its manufacturing capacity in the region and enhance geographic diversification outside of China.

Leadership Comments: Dan Bernstein, President and CEO of Bel, expressed excitement about the new facility's potential to accelerate manufacturing diversification, while Eyal Shary, CEO of Enercon, praised the team's efforts to keep the project on track during the acquisition process.

Earnings Report: Bel Fuse (BELFB) reported a quarterly loss of $0.14 per share, significantly missing the Zacks Consensus Estimate of $0.77 and down from earnings of $1.37 per share a year ago, despite revenues of $149.86 million exceeding estimates.

Market Outlook: The stock has underperformed compared to the S&P 500 this year, with a current Zacks Rank of #3 (Hold), indicating expected performance in line with the market; future stock movements will depend on management's commentary and earnings estimate revisions.

Leadership Transition at Bel Fuse Inc: Daniel Bernstein will step down as CEO after 24 years, transitioning to Non-Executive Chairman on May 27, 2025, while Farouq Tuweiq, currently CFO, will take over as President and CEO.

Company Growth Under Bernstein: During Bernstein's tenure, Bel Fuse Inc. expanded significantly through 19 acquisitions, increasing sales from under $100 million to over $600 million, and achieving record profitability in recent years.

Stock Recommendations: USANA Health Sciences, Inc. and Bel Fuse Inc. are highlighted as strong buy candidates with Zacks Rank #1, showing significant increases in earnings estimates over the past 60 days and favorable price-to-earnings ratios compared to the S&P 500.

Investment Insights: The article promotes upcoming stock recommendations for 2025, emphasizing the historical performance of Zacks Top 10 Stocks, which significantly outperformed the S&P 500 from 2012 to November 2024.

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Market Overview: U.S. stock futures showed mixed results with Dow futures slightly up by 0.1%, while several stocks, including BioAge Labs, experienced significant declines in pre-market trading due to negative news regarding clinical trials and other factors.

Notable Stock Movements: BioAge Labs shares plummeted 68.6% after halting a clinical trial, alongside other notable declines from companies like Palmer Square Capital (down 18.3%) and Bicara Therapeutics (down 14.7%).

Investor Conference Schedule: Bel Fuse Inc. has announced its investor conference schedule for December 2024, including participation in the Oppenheimer Midwest Virtual Summit on December 11 and the Northland Virtual Growth Conference on December 12, featuring CFO Farouq Tuweiq and VP Lynn Hutkin.

Company Overview: Bel Fuse Inc. is a global manufacturer of products that power, protect, and connect electronic circuits, serving various industries such as telecommunications, military, and medical, with a diverse range of product offerings.

Lions Gate and Adecoagro Stake Changes: Liberty 77 Capital increased its stake in Lions Gate Entertainment to 17.2%, while Tether Holdings raised its ownership in Adecoagro to 19.4% through significant share purchases over recent months.

Peabody Energy and Other Companies' Stake Adjustments: Thomist Capital Management reduced its stake in Peabody Energy below the reporting threshold, while Gamco Investors and TCV also decreased their stakes in Bel Fuse and Payoneer Global, respectively, amidst varying stock performance trends.

Analyst Upgrades and Downgrades: Several Wall Street analysts have adjusted their price targets for various companies, with notable upgrades for Coinbase, Syndax Pharmaceuticals, Roku, and Autodesk, while Hyatt Hotels and PepGen saw their targets cut.

Current Stock Performance: Despite the changes in price targets, stocks like Coinbase and Roku are performing well, closing above their respective targets, while Plug Power and PepGen are significantly below their new price targets.

Acquisition Details: Bel Fuse Inc. has acquired an 80% stake in Enercon Technologies for $320 million, with plans to purchase the remaining 20% by early 2027 based on future performance, expanding its capabilities in the aerospace and defense markets.

Enercon's Operations: Enercon, a supplier of power conversion solutions, will operate independently under Bel's Power and Solutions segment, enhancing Bel's manufacturing presence in India and the U.S. while leveraging Enercon's expertise from Israel.

Dividend Announcement: Bel Fuse declared a quarterly dividend of $0.06 per share for class A shares and $0.07 per share for class B shares, consistent with previous dividends, payable on January 31 to shareholders of record as of January 15.

Company Developments: Bel Fuse is facing inventory issues leading to a rating downgrade, but it is also planning to acquire a majority stake in Enercon Technologies, indicating ongoing strategic moves despite challenges.

Lamb Weston and Adecoagro Investments: Jana Partners acquired a 5.1% stake in Lamb Weston Holdings, purchasing over 7 million shares and proposing four director nominees, while Tether Holdings increased its stake in Adecoagro to 16.4% by buying nearly 1.8 million shares recently.

Changes in Stake for Other Companies: Carlyle Group reduced its stake in Soleno Therapeutics below 5%, Insight Venture Partners sold 3.5 million shares of nCino but retains a 10.8% ownership, and Gamco Investors decreased its stake in Bel Fuse to 11.5% after selling shares.

Earnings Call Overview: Bel Fuse Inc. held its Q3 2024 earnings conference call on October 24, 2024, where company executives discussed forward-looking statements regarding their expected financial performance and operating outlook for the future.

Forward-Looking Statements Disclaimer: The company emphasized that actual results may differ from projections due to various risks and uncertainties, and they are not obligated to update these forward-looking statements.

Earnings Performance: Bel Fuse (BELFB) reported quarterly earnings of $0.92 per share, exceeding expectations and showing a significant earnings surprise of 8.24%, despite a decline from $1.55 per share a year ago. The company also posted revenues of $123.64 million, slightly above estimates but down from $158.68 million year-over-year.

Future Outlook: The stock currently holds a Zacks Rank #3 (Hold), indicating expected performance in line with the market, as investors await changes in earnings estimates following the recent report. The Electronics - Miscellaneous Products industry is ranked in the top 29% of Zacks industries, suggesting a favorable outlook for stocks within this sector.

Financial Performance Overview: Bel Fuse Inc. reported preliminary Q3 2024 results showing net sales of $123.6 million, a decrease from $158.7 million in Q3 2023, but with an improved gross profit margin of 36.1% compared to 35.0% last year. Net earnings also fell to $8.1 million from $19.4 million in the same quarter last year.

Future Outlook and Guidance: The company anticipates Q4 2024 net sales between $117 to $125 million with gross margins around 34-36%, while noting positive trends in bookings for September and October across product segments, indicating potential growth as they enter 2025.

New Appointment: Bel Fuse Inc. has appointed Uma Pingali as the Global Head of Sales and Marketing, a newly created position aimed at enhancing the company's sales and marketing efforts following its history of acquisitions.

Leadership Experience: Uma brings over 30 years of experience in global sales and marketing within the electronics industry, having previously managed a $1.6 billion sales organization at Farnell and led teams across various countries including India, Singapore, and the U.S.

Carlos Slim's Investment in PBF Energy: Mexican billionaire Carlos Slim has transitioned to an activist investor by filing a 13D form, reporting the purchase of nearly 5.7 million shares of PBF Energy, bringing his total stake to 20%, despite the company's shares declining by 24% this year.

Stake Changes in Various Companies: Several investment firms adjusted their stakes in different companies, including Camac Fund increasing its Gold Reserve stake to 16.4%, Beach Point Capital reducing its Diebold Nixdorf holdings to 5.4%, and Samsara BioCapital lowering its Scholar Rock Holding stake to 8.3%.

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Bel Fuse Stock Performance: Bel Fuse (BELFB) shares rose 16.5% to $80.93, driven by strong trading volume and an expanding product portfolio, despite expected quarterly earnings showing a significant year-over-year decline.

Earnings Estimates and Market Position: The consensus EPS estimate for Bel Fuse has remained stable over the past month, indicating potential stock price stability, while Flex Ltd. (FLEX) also reported a slight increase in stock price but faced a decrease in its EPS estimate.

U.S. Stock Market Performance: U.S. stocks rose significantly, with the Dow Jones gaining around 400 points; notable gains included Darden Restaurants, which saw a 7.4% increase despite missing earnings estimates, and Rezolve AI Limited, whose shares jumped 88.8% following major investments in AI infrastructure.

Other Notable Stock Movements: Several companies experienced substantial stock price increases, including Edgewise Therapeutics (37.7%), Mobileye Global (13.4%), and various crypto-linked stocks that rose after the Federal Reserve's decision to cut interest rates by 50 basis points.