Belden Lowers Q3 Outlook; Shares Tank 16%

(RTTNews) - Belden Inc. (BDC) lowered its revenue and earnings outlook for the third quarter, reflecting softer than anticipated end-demand across its both segments. Shares of the company slipped over 16% in after-hours trading, following the news.

Third-quarter revenues are now expected to be about $625 million, compared to the prior outlook of $675 million to $690 million.

The company now expects earnings of $1.67 to $1.69 per share, compared to the prior outlook of $1.40 to $1.50 per share . Adjusted earnings is now expected to be in the range of $1.75 to $1.77 per share , compared to the prior outlook of $1.75 to $1.85 per share.

Analysts polled by Thomson Reuters currently expect earnings of $1.82 per share and revenues of $685.19 million for the quarter.

"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 Ashish Chand, President and CEO of Belden Inc.

"Demand began to weaken in the third quarter adding to ongoing pressure from channel destocking. 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."