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Sep 27, 2020
Belden Q3 2020 Earnings Report
Reported solid double-digit sequential increases in revenue, EPS and cash flow.
Key Takeaways
Belden Inc. reported fiscal third quarter 2020 results with revenues totaling $475.8 million and EPS of $0.46. Adjusted EPS was $0.72. The company saw improved business conditions and repaid all remaining short-term revolver borrowings during the quarter.
Revenues for the quarter totaled $475.8 million, compared to $533.1 million in the prior-year period.
EPS totaled $0.46 compared to $0.83 in the third quarter 2019.
Adjusted EPS was $0.72 compared to $1.19 in the third quarter 2019.
The company repaid all remaining short-term revolver borrowings during the third quarter.
Belden
Belden
Forward Guidance
The Company expects fourth quarter 2020 revenues to be $460 - $485 million. The Company expects fourth quarter 2020 GAAP EPS to be $0.13 - $0.28. The Company expects fourth quarter 2020 adjusted EPS to be $0.63 - $0.78.
Positive Outlook
- Demand trends and visibility in our business are improving.
- Assuming no further material disruptions related to COVID-19, we expect modest sequential improvement in underlying demand in the fourth quarter.
- Throughout this challenging period, we continue to invest in our business
- We align our portfolio around the favorable secular trends in industrial automation, cybersecurity, broadband & 5G, and smart buildings.
- The Company is well positioned for improving growth and robust margin expansion
Challenges Ahead
- The lack of certainty as to the duration and magnitude of the impact of COVID-19 and the economic recovery from that impact
- The results of the Company’s impairment analysis, which could reduce EPS, adjusted EPS, and various other financial metrics
- The presence of substitute products in the marketplace
- The inability of the Company to develop and introduce new products and competitive responses to our products
- The increased prevalence of cloud computing