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Belden Inc. (NYSE:BDC) investors will be delighted, with the company turning in some strong numbers with its latest results. Results were good overall, with revenues beating analyst predictions by 5.2% to hit US$667m. Statutory earnings per share (EPS) came in at US$1.31, some 7.4% above whatthe analysts had expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Belden
After the latest results, the consensus from Belden's five analysts is for revenues of US$2.53b in 2022, which would reflect a small 2.6% decline in sales compared to the last year of performance. Statutory earnings per share are predicted to surge 151% to US$5.13. Before this earnings report, the analysts had been forecasting revenues of US$2.51b and earnings per share (EPS) of US$4.64 in 2022. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the decent improvement in earnings per share expectations following these results.
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 6.7% to US$79.67. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Belden analyst has a price target of US$88.00 per share, while the most pessimistic values it at US$67.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. One more thing stood out to us about these estimates, and it's the idea that Belden's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 5.1% to the end of 2022. This tops off a historical decline of 0.6% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 7.0% per year. So while a broad number of companies are forecast to grow, unfortunately Belden is expected to see its sales affected worse than other companies in the industry.