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Aggressive Growth

Littelfuse, Inc (LFUS - Snapshot Report) shares are up sharply since being featured as a Zacks Rank Buy in early July.

Company Description

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

Sales Up 55%

On Aug 5 Littelfuse reported a 55% year over year jump in sales for the second quarter, to $157.5 million. This was also a 9% increase sequentially. Cash from operations more than doubled to $19.2 million.

Earnings per share came in at 90 cents, a big rebound from the 12 cent loss a year ago. There was a one-time adjustment last year, but better sales and cost controls contributed to the jump as well.

Bullish Outlook

Littelfuse's CEO said "We are having success with key organic growth initiatives; we have ramped up production to meet increased demand and maintain competitive lead times; and we remain on track with our manufacturing transfers which are delivering savings on or ahead of schedule."

He continued to say that the company will be seeing drastic cuts in costs of the next few quarters. Littelfuse also guided above the third-quarter estimates at that time.

Consensus Climbing

The full-year Zacks Consensus for this year is up 22 cents, to $3.36 on the news. Next year's projections are averaging $3.69, up 30 cents. Given the 61 cents earned last year, the annual growth rates are an eye-popping 451% this year and another 10% in 2011.

The Chart

Shares of LFUS jumped on the earnings news, only to retrace with the market weakness. However, shares are back up and pressuring the 52-week high; yet still trade at just 12 times forward estimates.

Read the July 9th Feature Here

Littelfuse, Inc  - ticker LFUS >
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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

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