Molex Inc. Earnings Cheat Sheet: Margins Expand and Profit Climbs

S&P 500 (NYSE:SPY) component Molex Incorporated (NASDAQ:MOLX) reported net income above Wall Street’s expectations for the first quarter. Molex 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 First Quarter

Results: Net income for the diversified electronics company rose to $80.5 million (46 cents per share) vs. $75.1 million (43 cents per share) in the same quarter a year earlier. This marks a rise of 7.2% from the year earlier quarter.

Revenue: Rose 4.3% to $936 million from the year earlier quarter.

Actual vs. Wall St. Expectations: MOLX beat the mean analyst estimate of 42 cents per share. It beat the average revenue estimate of $898.5 million.

Quoting Management: “Molex had another strong quarter, once again setting records for revenue and earnings per share. Production in Japan increased during the quarter as our operations recovered from the earthquake and tsunami and as our customers pushed to prepare for the Christmas selling season,” commented Martin P. Slark, Molex’s Chief Executive Officer. “We successfully converted the higher revenue to income, which allowed us to expand our margins and exceed our guidance for the September quarter.”

Key Stats:

Revenue has risen the past four quarters. Revenue increased 7.8% to $913.7 million in the fourth quarter of the last fiscal year. The figure rose 15.6% in the third quarter of the last fiscal year from the year earlier and climbed 23.6% in the second quarter of the last fiscal year from the year-ago quarter.

The company beat estimates last quarter after falling short in the previous two quarters. In the fourth quarter of the last fiscal year, it missed the mark by 2 cents, and in the third quarter of the last fiscal year, it fell short by 3 cents.

Gross margins grew 0.6 percentage point to 31.3%. The growth seemed to be driven by increased revenue, as the figure rose 4.3% from the year earlier quarter while costs rose 3.3%.

Looking Forward: Over the past ninety days, the average estimate for the second quarter has fallen from 52 cents per share to 43 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. The average estimate for the fiscal year is $1.75 per share, down from $2.04 ninety days ago.

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)