These Analysts Just Made A Substantial Downgrade To Their Belden Inc. (NYSE:BDC) EPS Forecasts

One thing we could say about the analysts on Belden Inc. (NYSE:BDC) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Revenue and earnings per share (EPS) forecasts were both revised downwards, with the analysts seeing grey clouds on the horizon.

After the downgrade, the consensus from Belden's five analysts is for revenues of US$2.3b in 2024, which would reflect a definite 12% decline in sales compared to the last year of performance. Statutory earnings per share are supposed to crater 20% to US$5.07 in the same period. Before this latest update, the analysts had been forecasting revenues of US$2.6b and earnings per share (EPS) of US$6.38 in 2024. Indeed, we can see that the analysts are a lot more bearish about Belden's prospects, administering a substantial drop in revenue estimates and slashing their EPS estimates to boot.

Check out our latest analysis for Belden

The consensus price target fell 19% to US$82.60, with the weaker earnings outlook clearly leading analyst valuation estimates.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 9.5% by the end of 2024. This indicates a significant reduction from annual growth of 5.6% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.0% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Belden is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Given the scope of the downgrades, it would not be a surprise to see the market become more wary of the business.

Unfortunately, the earnings downgrade - if accurate - may also place pressure on Belden's mountain of debt, which could lead to some belt tightening for shareholders. See why we're concerned about Belden's balance sheet by visiting our risks dashboard for free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.