Molex Incorporated Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Molex Incorporated (NASDAQ:MOLX) will unveil its latest earnings on Wednesday, August 8, 2012. Molex manufactures electronic components, including switches, integrated products, and electrical and fiber optic interconnection products and systems.

Molex Incorporated Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 38 cents per share, a decline of 13.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 39 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 38 cents during the last month. For the year, analysts are projecting profit of $1.58 per share, a decline of 8.1% from last year.

Last quarter, the company came in at net income of 35 cents per share against a mean estimate of profit of 34 cents per share, beating estimates after missing them in the previous quarter. In the second quarter, it missed forecasts by 3 cents.

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Stock Price Performance: Between June 6, 2012 and August 2, 2012, the stock price had risen $1.31 (5.6%), from $23.58 to $24.89. The stock price saw one of its best stretches over the last year between December 30, 2011 and January 12, 2012, when shares rose for nine straight days, increasing 8.8% (+$2.10) over that span. It saw one of its worst periods between April 27, 2012 and May 18, 2012 when shares fell for 16 straight days, dropping 17.3% (-$4.82) over that span.

A Look Back: In the third quarter, profit fell 4.8% to $64.9 million (36 cents a share) from $68.1 million (39 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 4.3% to $837.1 million from $874.5 million.

Wall St. Revenue Expectations: Analysts predict a decline of 3.6% in revenue from the year-earlier quarter to $880.5 million.

Key Stats:

An income boost this time around would be welcome news after profit declines in the past two quarters. Net income dropped 18.2% in the second quarter and then again in the third quarter.

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 4.9% in the second quarter and dropped again in the third quarter.

Analyst Ratings: With six analysts rating the stock as a buy, one rating it as a sell and five rating it as a hold, there are indications of a bullish outlook.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.41 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.

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

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