Amphenol Corp Earnings: The Streak is Broken

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

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Amphenol Corporation Earnings Cheat Sheet

Results: Net income for Amphenol Corporation rose to $147.4 million (90 cents per share) vs. $134.6 million (79 cents per share) in the same quarter a year earlier. This marks a rise of 9.5% from the year-earlier quarter.

Revenue: Rose 6.8% to $1.1 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Amphenol Corporation beat the mean analyst estimate of 89 cents per share. It beat the average revenue estimate of $1.05 billion.

Quoting Management: Amphenol President and Chief Executive Officer, R. Adam Norwitt, stated “We are pleased to report new records of performance in the third quarter of 2012 with sales and EPS of $1.103 billion and $.90, respectively. Sales increased by approximately 7% year-over-year and 4% sequentially. On a year-over-year basis, we experienced strength in the automotive, industrial, commercial aerospace and telecommunications and data communications equipment markets. On a sequential basis the Company saw strong growth in mobile devices primarily related to ramp ups of new mobile computing devices. Our strong growth is once again confirmation of the significant benefits of the Company’s diversity, especially given the increasing level of uncertainty in many of the world’s economies.”

Key Stats:

Last quarter’s profit increase breaks a streak of four consecutive quarters of year-over-year profit drops. In the second quarter, net income fell 4.6% from the year earlier, while the figure fell 1.1% in the first quarter, 13.2% in the fourth quarter of the last fiscal year and 1.9% in the third quarter of the last fiscal year.

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 2 cents in the second quarter, by one cent in the first quarter, and by 3 cents in the fourth quarter of the last fiscal year.

Revenue has now gone up in each of the last three quarters. In the second quarter, revenue rose 4.3% to $1.06 billion while the figure rose 4.4% in the first quarter from the year earlier.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from 88 cents a share to 90 cents over the last seven days. For the fiscal year, the average estimate has moved up from $3.34 a share to $3.40 over the last seven days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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