US$99.60 - That's What Analysts Think Belden Inc. (NYSE:BDC) Is Worth After These Results
It's been a pretty great week for Belden Inc. (NYSE:BDC) shareholders, with its shares surging 11% to US$83.23 in the week since its latest full-year results. It was a credible result overall, with revenues of US$2.5b and statutory earnings per share of US$5.66 both in line with analyst estimates, showing that Belden is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for Belden
Following the recent earnings report, the consensus from five analysts covering Belden is for revenues of US$2.32b in 2024. This implies a noticeable 7.7% decline in revenue compared to the last 12 months. Statutory earnings per share are expected to decline 19% to US$4.74 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$2.31b and earnings per share (EPS) of US$5.07 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
Despite cutting their earnings forecasts,the analysts have lifted their price target 17% to US$99.60, suggesting that these impacts are not expected to weigh on the stock's value in the long term. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Belden analyst has a price target of US$100.00 per share, while the most pessimistic values it at US$98.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 7.7% by the end of 2024. This indicates a significant reduction from annual growth of 7.0% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.4% per year. It's pretty clear that Belden's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Belden. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that in mind, we wouldn't be too quick to come to a conclusion on Belden. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Belden going out to 2026, and you can see them free on our platform here..
And what about risks? Every company has them, and we've spotted 1 warning sign for Belden you should know about.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
