Molex Earnings Cheat Sheet: Revenue Growth Drives Margin, Profit Increases

S&P 500 (NYSE:SPY) component Molex Incorporated (NASDAQ:MOLX) reported its results for the fourth quarter. Molex Inc. manufactures electronic components, including switches, integrated products and electrical and fiber optic interconnection products and systems.

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Molex Incorporated Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Molex Incorporated rose to $77.3 million (44 cents per share) vs. $39.8 million (23 cents per share) in the same quarter a year earlier. This marks a rise of 94.2% from the year earlier quarter.

Revenue: Rose 7.8% to $913.7 million from the year earlier quarter.

Actual vs. Wall St. Expectations: MOLX fell short of the mean analyst estimate of 46 cents per share. Analysts were expecting revenue of $916.8 million.

Quoting Management: “Looking back, we are very pleased with our performance both for the current quarter and for the full year. We set annual records for revenue and profitability in a very difficult operating environment. Surging commodity costs, rapid increases in customer requirements and the natural disaster in Japan presented significant obstacles which we were able to overcome,” commented Martin P. Slark, Molex’s Chief Executive Officer. “As a result, we were able to increase our dividend twice during the fiscal year.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 15.6% to $874.5 million in the third quarter. The figure rose 23.6% in the second quarter from the year earlier and climbed 33.2% in the first quarter from the year-ago quarter.

The company has now fallen short of estimates in the last two quarters. In the third quarter, it missed expectations by 3 cents with net income of 39 cents versus a mean estimate of net income of 42 cents per share.

Margins rose in the third quarter after falling the quarter before. Gross margin rose 0.9 percentage point to 30.8% from the quarter earlier quarter. In the second quarter, the figure rose 1.4 percentage points to 29.8% from the year earlier quarter.

Competitors to Watch: Amphenol Corporation (NYSE:APH), TE Connectivity Ltd. (NYSE:TEL), RF Industries, Ltd. (NASDAQ:RFIL), AVX Corporation (NYSE:AVX), Methode Electronics Inc. (NYSE:MEI), Thomas & Betts Corporation (NYSE:TNB), Spectrum Control, Inc. (NASDAQ:SPEC), 3M Company (NYSE:MMM), Illinois Tool Works Inc. (NYSE:ITW), and Optical Cable Corporation (NASDAQ:OCCF).

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(Source: Xignite Financials)