By Shares of Belden, a network-infrastructure company and broadband-equipment supplier, experienced a 13% increase to $84.21 in morning trading following the release of their fourth-quarter results. While shares have declined about 6% over the past year, the recent report provided an optimistic outlook.
Belden reported fourth-quarter sales of $551.2 million, which is a decline of 16%. However, this figure surpassed the $521.8 million expected by analysts surveyed by FactSet. Additionally, Belden’s adjusted earnings of $1.46 per share exceeded analysts’ forecasts of $1.13 per share.
The company’s CEO, Ashish Chand, highlighted that orders rose 4% sequentially, indicating stability in their end markets despite ongoing destocking trends. Although Chand acknowledged that the destocking period is not entirely behind them, he expressed confidence in the forward progress being made.
Chand noted that the increasing demand for Belden’s services is also being driven by the rise of artificial intelligence. More customers are approaching the company to design solutions that include data centers.
Overall, Belden’s fourth-quarter results support the notion that destocking trends are stabilizing. The company is experiencing increased interest in their services as AI continues to shape the industry.
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