Belden Lowers Q3 Revenue Expectations Because 'Softer Demand Will Continue,' CEO Says

Belden Inc BDC disclosed third-quarter (Q3) FY23 preliminary results, reducing revenue expectations.

The St. Louis, Missouri-based company lowered revenue expectations to $625 million (from $675 million to $690 million) vs. a $685.19 million estimate on weaker-than-expected end-demand in both segments. 

Also, BDC reduced the higher end of the previous adjusted EPS outlook to $1.75 to $1.77 (from $1.75 to $1.85 earlier) vs. street view of $1.82, with projected benefits from higher-margin solutions business and lower incentive compensation expenses.

"Demand began to weaken in the third quarter adding to ongoing pressure from channel destocking," CEO Ashish Chand said. "We believe softer demand will continue as we move into the fourth quarter, impacting both revenue and profitability. We are encouraged that our shift towards solutions continues despite market weakness. Furthermore, we are well-positioned to benefit from major secular trends with lengthy investment cycles that will enable us to reach our long-term targets, including automation, broadband investment, and smart buildings."

The company will release Q3 2023 results on Nov. 2, 2023. 

Price Action: BDC shares closed lower by 16.03% at $80.00 after-hours on Thursday.