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Oct 02, 2022

Belden Q3 2022 Earnings Report

Reported strong results and record EPS.

Key Takeaways

Belden Inc. reported a revenue increase of 11% to $670 million compared to the year-ago period. Net income was $104 million, and EPS reached a quarterly record of $2.35. The company is increasing its full-year 2022 guidance, expecting organic revenue growth of 15% to 16%.

Revenues increased organically by 15% in the third quarter.

Each of Belden's businesses grew organically, demonstrating the strength and strategic positioning of the portfolio.

The company delivered strong profitability, with expanded margins and 33% Adjusted EPS growth.

Belden continued to return capital to shareholders, while ending the quarter with net leverage of 1.1x.

Total Revenue
$670M
Previous year: $631M
+6.3%
EPS
$1.77
Previous year: $1.31
+35.1%
Adjusted EBITDA Margin
17.6%
Previous year: 16%
+10.0%
Gross Profit
$241M
Previous year: $223M
+8.1%
Cash and Equivalents
$547M
Previous year: $458M
+19.6%
Free Cash Flow
$68.1M
Previous year: $50.6M
+34.8%
Total Assets
$2.96B
Previous year: $3.34B
-11.2%

Belden

Belden

Forward Guidance

Belden is increasing its full-year 2022 guidance. The Company expects fourth quarter 2022 revenues to be $635 - $650 million and GAAP EPS to be $1.27 - $1.37. For the year ending December 31, 2022, the Company now expects revenues to be $2.583 - $2.598 billion and GAAP EPS to be $5.89 - $5.99.

Positive Outlook

  • Full-year revenue guidance now reflects expected organic revenue growth of 15% to 16%, up from 12% to 13% in prior guidance.
  • Significant levels of customer backlog.
  • Gaining momentum with our strategic growth initiatives.
  • Confident in ability to support customers.
  • Deliver at least $8.00 of adjusted EPS by 2025.

Challenges Ahead

  • Macroeconomic environment remains very dynamic with considerable uncertainties.
  • Volatile foreign exchange rates.
  • Volatile commodity prices.
  • Fourth quarter 2022 revenues expected to be lower compared to third quarter 2022 revenues due to a stronger U.S. dollar.
  • Typical seasonal patterns.