Amphenol Corp Earnings Cheat Sheet: Double-Digit Growth Again

S&P 500 (NYSE:SPY) component Amphenol Corporation (NYSE:APH) reported its results for the second quarter. Amphenol Corporation designs and makes electronic and fiber optic connectors, interconnect systems and coaxial and flat-ribbon cable.

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Amphenol Earnings Cheat Sheet for the Second Quarter

Results: Net income for Amphenol Corporation rose to $147.8 million (85 cents per share) vs. $129.7 million (74 cents per share) in the same quarter a year earlier. This marks a rise of 13.9% from the year earlier quarter.

Revenue: Rose 15% to $1.02 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: APH reported adjusted net income of 79 cents per share. By that measure, the company beat the mean estimate of 77 cents per share. It beat the average revenue estimate of $995.2 million.

Quoting Management: Amphenol President and Chief Executive Officer R. Adam Norwitt stated “The second quarter results established a new record of performance for Amphenol with sales of $1,018 million and EPS of $.79 (excluding one-time items). We are especially excited that we achieved a significant new milestone for the Company with quarterly sales in excess of $1 billion. Sales growth of 15% over last year was driven by strength across most of our served markets, led by Mobile Devices,Industrial and Automotive. We continue to perform well in a dynamic electronics market due to our leading technology, broad and increasing positions with our customers across all of our diverse markets, worldwide presence and lean cost structure. In addition, despite what continues to be an extremely challenging cost environment, our entrepreneurial management team executed well in the quarter, achieving industry leading operating margins of 19.4%, net income margins of 13.4% (both excluding one-time items) and operating cash flow of $105 million.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 24.8%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 32.4% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 30.1% and in the fourth quarter of the last fiscal year, the figure rose 49.6%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by one cent in the first quarter, by one cent in the fourth quarter of the last fiscal year, and by 5 cents in the third quarter of the last fiscal year.

Gross margin shrank 1.1 percentage points to 31.6%. The contraction appeared to be driven by increased costs, which rose 17% from the year earlier quarter while revenue rose 15%.

Competitors to Watch: Molex Incorporated (NASDAQ:MOLX), RF Industries, Ltd. (NASDAQ:RFIL), TE Connectivity Ltd. (NYSE:TEL), Thomas & Betts Corporation (NYSE:TNB), Methode Electronics Inc. (NYSE:MEI), Optical Cable Corporation (NASDAQ:OCCF), Spectrum Control, Inc. (NASDAQ:SPEC), CommScope, Inc. (NYSE:CTV), AVX Corporation (NYSE:AVX), and Belden Inc. (NYSE:BDC).

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(Source: Xignite Financials)