•
Jul 02, 2023

Belden Q2 2023 Earnings Report

Achieved record quarterly revenues and adjusted EPS, with gross margins exceeding expectations.

Key Takeaways

Belden reported record quarterly revenues of $692 million, a 4% increase year-over-year, and record adjusted EPS of $1.91, a 19% increase year-over-year. Gross margins were better than expected at 38%.

Record Revenues of $692 million, +4% y/y

Organic Growth of +5% y/y

GAAP EPS of $1.60, +22% y/y

Record Adjusted EPS of $1.91, +19% y/y

Total Revenue
$692M
Previous year: $667M
+3.9%
EPS
$1.91
Previous year: $1.6
+19.4%
Adjusted EBITDA Margin
17.8%
Previous year: 16.6%
+7.2%
Gross Profit
$261M
Previous year: $222M
+17.6%
Cash and Equivalents
$515M
Previous year: $528M
-2.4%
Free Cash Flow
$67.7M
Previous year: $29.3M
+130.9%
Total Assets
$3.15B
Previous year: $3.03B
+3.9%

Belden

Belden

Forward Guidance

Belden updates full year 2023 and provides newly issued guidance for the third quarter of 2023. Adjusted EPS guidance for 2023 now reflects year-over-year growth between 12% and 15%.

Positive Outlook

  • Benefit from long-term secular trends that have lengthy investment cycles.
  • Investments in automation, reshoring, increased connectivity, increasing bandwidth usage, and network upgrades all bode well for Belden to produce sustainable earnings growth.
  • Confident in markets and ability to execute strategy and generate sustainable, long-term shareholder value.
  • Business is transforming and continues to make excellent progress towards achieving goal of at least $8.00 of Adjusted EPS by 2025.

Challenges Ahead

  • Channel partners are taking down inventory in 2023 as the supply chain continues to normalize.
  • The temporary impact on orders is slightly higher than previously anticipated.
  • Expect a modest impact on full-year revenue.