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Apr 02, 2023

Belden Q1 2023 Earnings Report

Reported strong first-quarter results with revenue growth and margin expansion, and completed the acquisition of Berthold Sichert GmbH.

Key Takeaways

Belden reported a strong first quarter with a 5% increase in total revenues to $642 million and a 7% organic growth. GAAP EPS increased by 49% to $1.45, and adjusted EPS rose by 28% to $1.68. The company also completed the acquisition of Berthold Sichert GmbH for $98 million and executed $50 million in share repurchases.

Total revenues reached $642 million, a 5% year-over-year increase.

Organic growth was 7% year-over-year.

GAAP EPS increased by 49% year-over-year to $1.45.

Adjusted EPS increased by 28% year-over-year to $1.68.

Total Revenue
$642M
Previous year: $610M
+5.1%
EPS
$1.68
Previous year: $1.31
+28.2%
Adjusted EBITDA Margin
17.4%
Previous year: 16.3%
+6.7%
Gross Profit
$246M
Previous year: $209M
+17.8%
Cash and Equivalents
$589M
Previous year: $560M
+5.3%
Free Cash Flow
-$45.7M
Previous year: -$68.9M
-33.7%
Total Assets
$3.07B
Previous year: $3B
+2.1%

Belden

Belden

Forward Guidance

Belden has updated its full-year guidance and raised 2023 Revenues and Adjusted EPS. For the second quarter of 2023, Belden expects revenues of $675 - $690 million, organic growth of 3% - 5%, GAAP EPS of $1.36 - $1.46, and Adjusted EPS of $1.70 - $1.80. For the full year 2023, Belden expects revenues of $2.710 - $2.760 billion, organic growth of 3% - 5%, GAAP EPS of $5.71 - $6.01, and Adjusted EPS of $6.95 - $7.25.

Positive Outlook

  • Long-term secular trends with lengthy investment cycles benefit Belden's business.
  • Investments in automation, reshoring, and increased connectivity drive earnings growth.
  • Increasing bandwidth usage and network upgrades support Belden's growth.
  • Confident in the ability to execute strategy and generate sustainable, long-term shareholder value.
  • Making excellent progress towards achieving at least $8.00 of Adjusted EPS by 2025.

Challenges Ahead

  • Uncertain macro conditions.
  • Impact of a challenging global economy or a downturn in served markets.
  • Competitiveness of the global markets.
  • Inability to develop and introduce new products.
  • Impact of disruptions in the global supply chain.