Belden Q3 revenue rises 38%, slightly beats estimates

By Reuters News


Overview

  • US networking solutions firm's fiscal Q3 revenue rose 38% yr/yr, slightly beating analyst expectations

  • Adjusted EPS for fiscal Q3 met analyst consensus

  • Company announced $100 mln data center supply agreement for 2027


Outlook

  • Belden sees Q4 revenue between $960 mln and $980 mln

  • Company expects Q4 adjusted EPS of $2.20 to $2.35

  • Belden expects its data center business to grow over 50% in 2027


Result Drivers

  • AI AND AUTOMATION DEMAND - Co said strong demand for networking infrastructure driven by AI and automation investments

  • DATA CENTER AGREEMENT - Co said new $100 mln supply agreement expected to drive significant growth in data center business

  • RUCKUS INTEGRATION - Co said integration of Ruckus acquisition is progressing, with expanding cross-selling opportunities


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Beat*

$966 mln

$961.82 mln (6 Analysts)

Q3 Adjusted EPS

Meet

$2.26

$2.26 (6 Analysts)

Q3 Loss Per Share

$0.29

Q3 Adjusted EBITDA

$171 mln

Q3 Adjusted EBITDA Margin

17.70%

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the communications & networking peer group is "buy"

  • Wall Street's median 12-month price target for Belden Inc. is $152.50, about 43% above its October 28 closing price of $106.66

  • The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 14 three months ago


Reuters Recommended Reads

  • Oct 29 - Entegris Q3 sales rise 25%, beat analyst estimates

  • Oct 29 - Cash is king as investors draw new battle lines in AI spending boom

  • Oct 28 - Microsoft Q1 results beats estimates driven by Azure growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital Com is an execution-only service provider. The present material must be regarded as marketing communication and should not be interpreted as investment research or investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page, then you do so entirely at your own risk