Amphenol Earnings: Profit Satisfies Investors

S&P 500 (NYSE:SPY) component Amphenol Corporation (NYSE:APH) reported its results for the second 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 fell to $140.9 million (86 cents per share) vs. $147.8 million (85 cents per share) a year earlier. This is a decline of 4.6% from the year-earlier quarter.

Revenue: Rose 4.3% to $1.06 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Amphenol Corporation reported adjusted net income of 79 cents per share. By that measure, the company fell short of mean estimate of 84 cents per share. Analysts were expecting revenue 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 second quarter of 2012 with sales and EPS of $1.061 billion and $.86, respectively. Sales increased by approximately 4% year-over-year and 8% sequentially. On a year-over-year basis, strength in the automotive, industrial, commercial aerospace and telecommunications and data communications equipment markets offset declines in the defense and wireless markets. This is once again confirmation of the significant benefits of the Company’s diversity, especially given the uncertain environment in many of the world’s economies. In addition, it is extremely rewarding that the Company’s unique entrepreneurial culture continues to drive an unwavering focus on profitability, resulting in another sequential operating margin improvement of 50 basis points to 19.4% in Q2 2012. I am very proud of our organization as we continue to execute well.”

Key Stats:

The company has now seen net income fall for four quarters in a row. In the first quarter, net income fell 1.1% while the figure fell 13.2% in the fourth quarter of the last fiscal year and 1.9% in the third quarter of the last fiscal year.

After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the first quarter, it topped the mark by one cent, and in the fourth quarter of the last fiscal year, it was ahead by 3 cents.

The company’s revenue has now risen for two straight quarters. In the first quarter, revenue increased 4.4% to $981.6 million from the year-earlier quarter.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the third quarter is 85 cents per share, down from 87 cents ninety days ago. Over the past sixty days, the average estimate for the fiscal year has reached $3.34 abs per share, a decline from $3.37.

Competitors to Watch: Molex Incorporated, RF Industries, Ltd., TE Connectivity Ltd., Thomas & Betts Corporation, Methode Electronics Inc., Optical Cable Corporation, Spectrum Control, Inc., CommScope, Inc., AVX Corporation, and Belden Inc.

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

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