Amphenol Earnings: Here’s Why Investors are Not Excited Now

Amphenol Corporation (NYSE:APH) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 7.09%.

Amphenol Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 10.47% to $0.95 in the quarter versus EPS of $0.86 in the year-earlier quarter.

Revenue: Rose 7.06% to $1.14 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Amphenol Corporation reported adjusted EPS income of $0.95 per share. By that measure, the company beat the mean analyst estimate of $0.94. It missed the average revenue estimate of $1.14 billion.

Quoting Management: Amphenol President and Chief Executive Officer, R. Adam Norwitt, stated “We are pleased to report strong second quarter sales up 7% over the comparable 2012 quarter and 5% sequentially. The sales growth over last year was driven by increases in nearly all of our served markets led by the commercial aerospace, automotive, mobile networks and broadband markets with contributions from both organic growth and our acquisition program. Sequentially, we grew in the information technology and data communications, mobile networks, broadband, industrial and automotive markets, but experienced modest sequential declines in the mobile device and defense markets. Our strong growth is further confirmation of the significant benefits of the Company’s technology leadership and diversification. We are encouraged to have achieved orders of $1.177 billion in the second quarter, representing a book-to-bill of 1.04 to 1. In addition, it is extremely rewarding that the Company’s unique entrepreneurial culture continues to drive an unwavering focus on profitability, resulting in an operating margin improvement of 30 basis points over the prior year quarter to 19.7%, driving strong 10% EPS growth and record EPS of $.95 in the quarter. These results are a direct result of our management team’s ability to react quickly in a dynamic environment, especially given the continuing high levels of uncertainty in most of the world’s economies. I am very proud of our organization as we continue to execute well.”

Key Stats (on next page)…

Revenue increased 5.2% from $1.08 billion in the previous quarter. EPS increased 9.2% from $0.87 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.99 to a profit $1. For the current year, the average estimate has moved up from a profit of $3.82 to a profit of $3.85 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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