Benzinga | Oct 29, 2021 09:56AM EDT

Bel Fuse Clocks 18% Sales Growth In Q3, Margin Shrinks On Higher Labor, Materials Costs

* Bel Fuse Inc (NASDAQ:BELFA) reported third-quarter FY21 net sales growth of 18.1% year-on-year to $146.97 million, beating the consensus of $130 million.

* Power Solutions and Magnetics segments primarily drove sales growth in Q3, the company mentioned.

* Margins: The gross margin contracted 230 bps to 24.5%. The adjusted EBITDA margin contracted 90 bps to 8.6%.

* Non-GAAP EPS was $0.48 versus $0.58 posted a year ago.

* Bel Fuse held $61.96 million in cash and equivalents.

* It recorded a backlog of $390 million as of September 30, 2021, representing growth of over 100% from December 31, 2020.

* "With almost $750 million in orders received in the last 12 months, we remain impacted by material shortages and the worldwide logistics situation which we estimate impacted our net sales by approximately $10 million this quarter. Margins continue to see pressure given the global increase in labor and materials costs; however, we continue to focus on internal initiatives to improve our margins," said CEO Daniel Bernstein.

* Price Action: BELFA shares traded higher by 4.91% at $13.90 on the last check Friday.