Littelfuse, Inc ( LFUS - Snapshot Report ) analysts rushed to raised estimates after the company released its revised sales guidance. Demand continues to exceed expectations and the company is able to keep up.

Company Description

Littelfuse makes a variety electrical components that are used in the auto, computer and other industries. The company has facilities around the world, but is based in Chicago.

Raising Guidance

One of the best events that can happen for a stock is to have the company raise guidance ahead of an earnings report. On Jun 11 Littelfuse did just that, lifting its sales forecasts by $7 million on both ends of the range, to between $155 and $160 million.

The CEO sited increasing demand and the company’s rapid response to meet the growing orders. Littelfuse also has a solid backlog of orders moving forward.

Estimates Climb

Following the revised guidance analysts began raising estimates. The Zacks Consensus Estimate for 2010 is up 22 cents to $3.14. Next year's forecasts are averaging $3.39, up 17 cents.

Littelfuse is in the midst of a big comeback after earning just 61 cents in 2009.

Valuations

No matter what metric you are looking at, the valuations for LFUS are attractive. The forward P/E is just 10 times and the PEG ratio is a solid 1.0. Currently the price-to-book is slightly higher than the industry average but only 1.7 times.

Littelfuse is well ahead of its peers in terms on profitability as well. The net profit margin is about 6.7% compared to the industry average of 1.0%. Littelfuse produces a return on equity of just under 10%, more than twice the industry norm.

The Chart

Shares of LFUS had been in a sharp downward trend until the revised guidance. While shares have sold off since the jump on the news, the announcement was enough to slow the bleeding and should spark a turn around heading into the company's next earnings release.

Bill Wilton is the Growth Stock Strategist for Zacks.com. He is also the Editor in charge of the market-beating Zacks Growth Trader service