Belden stock plunges 16% on Q3 guidance cut

Belden (NYSE:) shares fell more than 16% after-hours following the company’s reported preliminary Q3/23 results.

The company now predicts Q3 revenues of around $625 million, down from the earlier estimate of $675 million-$690 million. The consensus estimate stood at $685.2 million.

GAAP EPS is forecasted between $1.67-$1.69, up from the prior $1.40-$1.50 range, primarily due to a gain on the sale of assets. The adjusted EPS is expected to land between $1.75-$1.77, slightly down from the prior estimate of $1.75-$1.85. The consensus stood at $1.82.

“While a weaker-than-anticipated macroeconomic backdrop impacted revenues, strong gross margin performance, and reduced variable compensation costs resulted in the Company achieving the lower end of our prior Adjusted EPS outlook,” said CEO Ashish Chand.

Chand also mentioned ongoing soft demand into Q4, impacting revenue and profits. However, he remained optimistic about Belden’s strategic shifts and its position to capitalize on major secular trends, including automation, broadband investment, and smart buildings.

The company is set to report its Q3 results on Thursday, November 2, 2023.