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Can Belden (BDC) Retain Its Beat Streak This Earnings Season?

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Belden Inc. (BDC - Free Report) is scheduled to release first-quarter 2023 results on May 3, before market open.

The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 12.6%.

Let’s see how things have shaped up for Belden this earnings season.

Belden Inc Price and EPS Surprise

Belden Inc Price and EPS Surprise

Belden Inc price-eps-surprise | Belden Inc Quote

Factors to Note

Higher sales and favorable pricing from industrial automation, smart buildings, and broadband & 5G products are likely to have aided Belden’s first-quarter performance. The top line is expected to reflect benefits from the acquisitions of Communication Associates (April 2022) and NetModule AG (March 2022). The Zacks Consensus Estimate for total revenues in the first quarter indicates a 2.2% increase from the year-ago reported number.

Higher volumes and favorable pricing are expected to have driven Industrial Automation and Enterprise Solutions revenues. The Zacks Consensus Estimate for Enterprise Solutions revenues suggests a 5.2% increase from the year-ago reported number.

However, foreign currency headwinds and lower copper pass-through pricing are likely to have hurt Belden’s first-quarter performance.

What Does the Zacks Model Say?

Our proven model does not conclusively predict an earnings beat for Belden this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of beating estimates, which is not the case here, as elaborated below.

Earnings ESP: Belden has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.55. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Belden currently carries a Zacks Rank #3.  

Highlights of Q4 Earnings

In fourth-quarter 2022, Belden reported adjusted earnings of $1.75 per share, which beat the Zacks Consensus Estimate of $1.66. Total revenues of $659.07 million surpassed the Zacks Consensus Estimate by 2.26%. Both the top and bottom lines increased year over year.

Stocks to Consider

Here are some companies within the broader Industrial Products sector that you may want to consider, as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.

A. O. Smith (AOS - Free Report) has an Earnings ESP of +10.19% and a Zacks Rank #3. The company is scheduled to release first-quarter 2023 results on Apr 27. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for A. O. Smith’s first-quarter earnings has been revised upward by a penny in the past 60 days. The company pulled off a trailing four-quarter earnings surprise of 3.2%, on average.

Illinois Tool Works (ITW - Free Report) has an Earnings ESP of +1.05% and a Zacks Rank #3. The company is set to release first-quarter 2023 results on May 2.

While the Zacks Consensus Estimate for Illinois Tool’s first-quarter earnings has been revised downward by approximately 1% in the past 60 days, the same has increased by 2.3% in the past 90 days. The company pulled off a trailing four-quarter earnings surprise of 0.9%, on average.

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