) has delivered 7 straight positive earnings surprises with an
average beat of almost 13.0%. Strong estimate revisions after
impressive second quarter results helped this cable, connectivity
and networking solutions provider achieve a Zacks #1 Rank (Strong
Buy) on August 16. Furthermore, a forward price-to-earnings (P/E)
multiple of just 12.0 and price-to-sales (P/S) multiple as low as
0.85 make it a true value pick.
Margin Expansion Drove 2Q Results
Belden reported strong second quarter 2012 results on August 9 with
earnings of 92 cents per share, which exceeded the Zacks Consensus
Estimate by 18 cents or 24.3%. The better-than-expected earnings
were primarily driven by strong margin expansion.
Revenue declined 9.7% from the prior-year quarter to $484.0
million. However, this decline was more than offset by a 90 basis
points improvement in operating margin due to stringent cost
control. Total operating expenses declined 6.0% year over year to
The strong second quarter earnings encouraged Belden to raise its
full year 2012 earnings estimate to between $2.95 and $3.05 per
share on revenue of $1.95 billion to $1.97 billion.
Belden recently announced the acquisition of Miranda Technologies
Inc. for $374.7 million in cash. The full year guidance includes
$80 million of revenues and 14 cents per share related to the
Earnings Estimates Moving Up
For 2012, the Zacks Consensus Estimate jumped 8.0% to $2.98 over
the past 30 days as seven of eight estimates were revised upward.
For 2013, the Zacks Consensus Estimate of $3.54 improved 6.9% on
the back of upward revisions from, again, seven of eight estimates.
Valuation Continues to Impress
In addition to low P/E and P/S multiples, the stock looks
attractive with respect to its price-to-book (P/B) multiple of just
2.34. A P/E below 15.0, a P/S ratio less than 1.0 and a P/B ratio
under 3.0 generally suggests a value stock. Moreover, Belden's PEG
ratio of just 0.91 indicates that the stock is reasonably valued
given the expected growth of 13.3%.
St. Louis, Missouri based Belden Inc. was incorporated in 1988.
Belden Inc. designs, manufactures and sells products that help in
the transmission of signals for data, sound and video applications.
Its products primarily cater to the industrial, enterprise,
broadcast and consumer electronics end markets. The company has a
market cap of $1.63 billion.
BELDEN INC (BDC): Free Stock Analysis Report
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