Belden Inc (BDC) Reports Q3 2023 Earnings: Revenues Down 7% Y/Y, Adjusted EPS Grows 1% Y/Y
Belden Inc (NYSE:BDC) reported Q3 2023 revenues of $627 million, a decrease of 7% year-over-year (Y/Y).
The company's GAAP EPS stood at $1.70, down 28% Y/Y, while the adjusted EPS was $1.78, up 1% Y/Y.
Belden Inc (NYSE:BDC) executed $64 million of share repurchases during the quarter, and $150 million year to date.
Net income for the quarter was $72 million, compared to $104 million in the year-ago period.
On November 2, 2023, Belden Inc (NYSE:BDC), a leading global supplier of network infrastructure and digitization solutions, announced its fiscal third quarter results for the period ended October 1, 2023. The company reported revenues of $627 million, marking a 7% decrease Y/Y, and an organic growth decline of 9% Y/Y. The GAAP EPS was $1.70, down 28% Y/Y, while the adjusted EPS was $1.78, up 1% Y/Y.
Financial Performance and Challenges
According to Ashish Chand, President and CEO of Belden Inc, the company faced weak demand across its markets during the third quarter. However, the expanding solutions-driven mix drove gross margin outperformance. The company expects the challenges to persist into the fourth quarter and most likely into the coming year. Belden Inc plans to mitigate temporary demand weakness by taking productivity measures to better align with these expected conditions.
Key Financial Details
The company's net income for the quarter was $72 million, compared to $104 million in the year-ago period. The prior year net income included a pre-tax gain on sale of assets of $38 million compared to $12 million this year. Net income as a percentage of revenue was 11.5%, compared to 15.5% in the year-ago period. EPS totaled $1.70 for the quarter, compared to $2.35 in the year-ago period.
Segment Performance
Revenues for the Industrial Automation Solutions and Enterprise Solutions segments were down 4% and 14%, respectively. Adjusted EBITDA was $115 million, compared to $118 million in the year-ago period. Adjusted EBITDA margins expanded 80bps to 18.4%, compared to 17.6% in the year-ago period. Adjusted EPS was $1.78, increasing 1% compared to $1.77 in the year-ago period.
Outlook
For the fourth quarter of 2023, Belden Inc expects revenues to be between $510 million and $530 million, with a GAAP EPS of $0.49 - $0.64 and an adjusted EPS of $1.05 - $1.20. The company anticipates ongoing demand headwinds, pauses in capital spending by customers, and channel destocking pressures.
Explore the complete 8-K earnings release (here) from Belden Inc for further details.
This article first appeared on GuruFocus.
