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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.

Total Revenue
$476M
Previous year: $620M
-23.3%
EPS
$0.72
Previous year: $1.18
-39.0%
Adjusted EBITDA Margin
13.7%
Gross Profit
$168M
Previous year: $235M
-28.8%
Cash and Equivalents
$391M
Previous year: $297M
+31.9%
Free Cash Flow
$35.7M
Previous year: $44.6M
-19.8%
Total Assets
$3.04B
Previous year: $3.44B
-11.8%

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