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

Molex Inc. (NASDAQ:MOLX) delivered a profit and missed Wall Street’s expectations, AND 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 5.61%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Molex Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 10.81% to $0.33 in the quarter versus EPS of $0.37 in the year-earlier quarter.

Revenue: Rose 1.89% to $852.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Molex Inc. reported adjusted EPS income of $0.33 per share. By that measure, the company missed the mean analyst estimate of $0.35. It missed the average revenue estimate of $917.51 million.

Quoting Management: “Revenue in the March quarter was weaker than expected, largely due to the sharp reduction in demand from one customer for certain new programs that were launched in the September quarter and ramped significantly in the December quarter. The remainder of the business experienced a normal seasonal decline in revenue. We were able to mitigate the impact of lower revenue by closely managing manufacturing and operating costs,” stated Martin P. Slark, Chief Executive Officer. “Our backlog increased both sequentially and year over year and our order rate for the quarter was stable with sequential improvements in the automotive and industrial markets. The distribution channel was also stronger this quarter and we are optimistic that the remainder of calendar 2013 will provide more robust growth opportunities.”

Key Stats (on next page)…

Revenue decreased 11.87% from $967.74 million in the previous quarter. EPS decreased 15.38% from $0.39 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.43 to a profit $0.41. For the current year, the average estimate has moved down from a profit of $1.58 to a profit of $1.57 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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