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Apr 04, 2021

Belden Q1 2021 Earnings Report

Belden reported strong results exceeding guidance, driven by improved demand trends and organic growth.

Key Takeaways

Belden Inc. reported a strong first quarter in 2021, with revenues increasing by 15.7% to $536.4 million compared to the previous year. Net income also saw a significant increase, reaching $28.7 million, and adjusted EPS rose by 40.3% to $0.94. The company has raised its full-year guidance for revenue and EPS, reflecting confidence in continued improvement in end market conditions.

Total revenues increased by 15.7% to $536.4 million compared to the year-ago period.

Net income was $28.7 million, up from $14.9 million in the prior-year period.

Adjusted EPS increased by 40.3% to $0.94 compared to $0.67 in the first quarter 2020.

Full-year 2021 revenue and EPS guidance was raised due to better-than-expected performance and improved outlook.

Total Revenue
$536M
Previous year: $464M
+15.7%
EPS
$0.94
Previous year: $0.67
+40.3%
Adjusted EBITDA Margin
14.9%
Gross Profit
$191M
Previous year: $171M
+12.2%
Cash and Equivalents
$371M
Previous year: $251M
+47.6%
Free Cash Flow
-$52.7M
Previous year: -$73M
-27.8%
Total Assets
$3.15B
Previous year: $3.18B
-1.0%

Belden

Belden

Forward Guidance

The Company expects second quarter 2021 revenues to be $535 - $550 million. For the year ending December 31, 2021, the Company now expects revenues to be $2.130 - $2.180 billion, compared to prior guidance of $1.990 - $2.050 billion. The Company expects second quarter 2021 GAAP EPS to be $0.38 - $0.48. For the year ending December 31, 2021, the Company now expects GAAP EPS to be $1.97 - $2.27, compared to prior guidance of $1.70 - $2.10. The Company expects second quarter 2021 adjusted EPS to be $0.88 - $0.98. For the year ending December 31, 2021, the Company now expects adjusted EPS to be $3.50 - $3.80, compared to prior guidance of $2.90 - $3.30.

Positive Outlook

  • End market conditions are improving.
  • Recent order rates are encouraging.
  • Solid execution is expected.
  • Full year 2021 guidance increased.
  • Portfolio aligned around favorable secular trends.

Challenges Ahead

  • Uncertainty regarding the duration and magnitude of the impact of COVID-19 and the economic recovery from that impact.
  • Impact of a challenging global economy or a downturn in served markets.
  • Disruptions in the Company’s information systems including due to cyber-attacks leading to exposures of personally identifiable information.
  • Changes in tax laws and variability in the Company’s quarterly and annual effective tax rates.
  • Cost and availability of raw materials including copper, plastic compounds, electronic components, and other materials.