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On Wednesday, Benchmark analyst David Williams reiterated a Hold rating on Littelfuse Inc (NASDAQ:LFUS) following the announcement of Chief Financial Officer Meenal Sethna's upcoming departure. The company revealed on Tuesday that Sethna will step down from her role but will continue to serve until September 2025. According to InvestingPro data, Littelfuse maintains strong financial health with a current ratio of 3.58, indicating robust liquidity management under Sethna's leadership. Littelfuse has begun a formal search for Sethna's successor, with the Board of Directors and newly appointed CEO Dr. Greg Henderson taking an active role in selecting from both internal and external candidates.
The company emphasized that Sethna's decision to leave is not due to any issues with Littelfuse's operations, financial standing, or business practices. According to Williams, the move appears to be a personal career choice by Sethna, who believes it is the right time to explore new opportunities after a decade as CFO, especially considering the company's strong financial situation. This is supported by the company's impressive track record of raising dividends for 15 consecutive years, as highlighted in InvestingPro's analysis.
The transition comes at a time when Littelfuse is undergoing a strategic review, and Dr. Henderson has recently taken on the CEO position. Williams noted that there is no indication of any disagreement over the direction or strategic goals of the company. The analyst's Hold rating remains in place as he awaits more information on the potential effects of tariffs, the results of the strategic review, and the naming of a new CFO. Despite recent stock pressure, with shares down nearly 34% over the past six months, InvestingPro's Fair Value analysis suggests the stock may be undervalued at current levels. For deeper insights into Littelfuse's financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Littelfuse Inc. reported its fourth-quarter 2024 earnings, revealing an adjusted diluted earnings per share (EPS) of $2.14, which missed the forecasted $2.36. However, the company's revenue for the quarter was $530 million, slightly exceeding the expected $523.3 million. For the full year, sales reached $2.2 billion, marking a 7% decline year-over-year. Despite the mixed earnings results, Littelfuse generated strong free cash flow of $282 million for the year. The company continues to focus on high-voltage electric vehicle applications and electrification technologies. Littelfuse also announced that Meenal Sethna, the Executive Vice President and Chief Financial Officer, will step down from her position in September 2025 after a decade with the company. The company has initiated a formal search for a new CFO as part of its ongoing efforts to maintain financial strength and support growth objectives. Additionally, Dave Heintzeman, the CEO, announced his retirement after 40 years, with Greg Henderson set to succeed him.
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