BELFB - after listening to the call again, you’re correct in your statements. Those additional one-time customer charges contributed to revenues, but were dilutive to margins. So while revenue is expected to potentially decline on a reported basis, profit excluding restructuring costs may come in above 2022.
I continue to believe the opportunities in front of them are longer-term in nature, with aerospace still operating below potential, mobility in early innings, magnetic working through a short term blip and strong backlog/orders in their Power solutions segment. I believe their restructuring actions to consolidate operations should also provide further operating leverage and efficiencies.
At this multiple, I think the risk / reward is attractive and that there are significant long-term opportunities beyond this upcoming year. It certainly may bounce around this year, and I’ll be selling $45/$50 OTM calls on rallies and $30 puts on dips around my core position.
