Electronic system and device provider Bel Fuse (NASDAQ: BELFA) reported Q3 CY2025 results beating Wall Street’s revenue expectations, with sales up 44.8% year on year to $179 million. On top of that, next quarter’s revenue guidance ($172.5 million at the midpoint) was surprisingly good and 6.2% above what analysts were expecting. Its GAAP profit of $1.77 per share was 42.7% above analysts’ consensus estimates.

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"Bel delivered a strong third quarter, with sales and gross margin percentage at the high end of our guidance," said Farouq Tuweiq, President and CEO.

Company Overview

Founded by 26-year-old Elliot Bernstein during the electronics boom after WW2, Bel Fuse (NASDAQ: BELF.A) provides electronic systems and devices to the telecommunications, networking, transportation, and industrial sectors.

Revenue Growth

A company’s long-term performance is an indicator of its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Unfortunately, Bel Fuse’s 6.9% annualized revenue growth over the last five years was mediocre. This fell short of our benchmark for the industrials sector and is a tough starting point for our analysis.

Long-term growth is the most important, but within industrials, a half-decade historical view may miss new industry trends or demand cycles. Bel Fuse’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 1.5% annually. Bel Fuse isn’t alone in its struggles as the Electronic Components industry experienced a cyclical downturn, with many similar businesses observing lower sales at this time.

This quarter, Bel Fuse reported magnificent year-on-year revenue growth of 44.8%, and its $179 million of revenue beat Wall Street’s estimates by 3.7%. Company management is currently guiding for a 15.1% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 5.4% over the next 12 months. While this projection indicates its newer products and services will catalyze better top-line performance, it is still below average for the sector.

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Operating Margin

Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes.

Bel Fuse has managed its cost base well over the last five years. It demonstrated solid profitability for an industrials business, producing an average operating margin of 11.7%.

Analyzing the trend in its profitability, Bel Fuse’s operating margin rose by 12.9 percentage points over the last five years, as its sales growth gave it operating leverage.

In Q3, Bel Fuse generated an operating margin profit margin of 16.9%, up 7 percentage points year on year. The increase was solid, and because its operating margin rose more than its gross margin, we can infer it was more efficient with expenses such as marketing, R&D, and administrative overhead.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

Bel Fuse’s EPS grew at an astounding 90.5% compounded annual growth rate over the last five years, higher than its 6.9% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.

We can take a deeper look into Bel Fuse’s earnings to better understand the drivers of its performance. As we mentioned earlier, Bel Fuse’s operating margin expanded by 12.9 percentage points over the last five years. On top of that, its share count shrank by 14.7%. These are positive signs for shareholders because improving profitability and share buybacks turbocharge EPS growth relative to revenue growth.

Like with revenue, we analyze EPS over a more recent period because it can provide insight into an emerging theme or development for the business.

For Bel Fuse, its two-year annual EPS declines of 6.1% mark a reversal from its (seemingly) healthy five-year trend. We hope Bel Fuse can return to earnings growth in the future.

In Q3, Bel Fuse reported EPS of $1.77, up from $0.61 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Bel Fuse’s full-year EPS of $5.02 to grow 5%.

Key Takeaways from Bel Fuse’s Q3 Results

It was good to see Bel Fuse beat analysts’ EPS expectations this quarter. We were also excited its revenue guidance for next quarter outperformed Wall Street’s estimates. Zooming out, we think this was a solid print. The stock remained flat at $135.98 immediately following the results.

Indeed, Bel Fuse had a rock-solid quarterly earnings result, but is this stock a good investment here? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.