The following is a summary of the Belden Inc. (BDC) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Belden reported Q1 2024 revenue of $536 million, a decrease of 17% YoY.

• Adjusted EPS was $1.24.

• Gross profit margins slightly decreased to 38.4% due to lower sales volume.

• Belden's trailing 12-month free cash flow stayed strong at $241 million.

• The company returned $58 million to shareholders through the repurchase of approximately 700,000 shares.

• Net leverage ratio remained consistent with their long-term target at 1.6.

Business Progress:

• Demand for Q1 2024 stayed stable, similar to the previous period.

• Orders for Q1 2024 were up 5% sequentially, indicating a more stable order environment.

• The company signed a definitive purchase agreement to acquire Precision Optical Technologies, which will increase their contributions to the enterprise and broadband markets, primarily in the PON market.

• Belden launched capabilities in network resilience, edge computing, and data interoperability.

• Notable operational accomplishments included a $10M+ project for a rail network in India and a multimillion-dollar project for a major American hospital facility redevelopment.

• Precision Optical Technologies acquisition is projected to generate 2024 revenue of approximately $150 million with growth in the mid-to-high single digits in the coming years.

• Despite the ongoing destocking cycle, Belden stands by its $8 EPS target for 2025, expressing confidence in its investments.

• Belden plans to continue organic growth driven by solutions, M&A, and share repurchases, with an anticipated increase in infrastructure-related capital expenditures.

• The company is concentrating on strong markets like healthcare for unique growth opportunities and striving to differentiate itself from competitors by focusing on solutions-oriented processes.

• The acquisition of Precision Optical Technologies will help Belden to augment its capabilities with existing and new customers, particularly in serving the data center sectors.

More details: Belden IR

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