Amphenol Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Amphenol (NYSE:APH) will unveil its latest earnings tomorrow, Thursday, January 17, 2013. Amphenol designs and produces electronic and fiber optic connectors, interconnect systems, and coaxial and flat-ribbon cable.

Amphenol Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 90 cents per share, a rise of 23.3% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. For the year, analysts are projecting profit of $3.43 per share, a rise of 11% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by one cent, reporting net income of 90 cents per share against a mean estimate of profit of 89 cents per share.

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Here’s how Amphenol traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

APH

Wall St. Revenue Expectations: On average, analysts predict $1.11 billion in revenue this quarter, a rise of 17% from the year-ago quarter. Analysts are forecasting total revenue of $4.25 billion for the year, a rise of 7.9% from last year’s revenue of $3.94 billion.

A Look Back: In the third quarter, profit rose 9.5% to $147.4 million (90 cents a share) from $134.6 million (79 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 6.8% to $1.1 billion from $1.03 billion.

Analyst Ratings: With seven analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

Last quarter’s earnings rise was a switch from preceding drops, so the upcoming earnings announcement is a chance to build on last quarter’s result. Net income fell in the fourth quarter of the last fiscal year, the first quarter and the second quarter before snapping that run with a profit increase in the third quarter.

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 4.4% in the first quarter and 4.3% in the second quarter before climbing again in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.05 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company improved this liquidity measure from 3.03 in the second quarter to the last quarter driven in part by an increase in current assets. Current assets increased 8.9% to $2.64 billion while liabilities rose by 7.9% to $864.6 million.

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