) posted a net income of $0.86 per share in the second quarter of
2012, beating the Zacks Consensus Estimate by 2 cents. The
quarter's results reported an increase from the prior quarter of
$0.77 per share and the year-ago figure of $0.85 per share.
Based in Connecticut, Amphenol designs, manufactures and markets
electronic and fiber optic connectors, cable and interconnect
Sales came in at a record $1.061 billion, up 4.2% year over year
and 8.0% sequentially, and beat management's guidance range of
$1.040 billion to $1.055 billion. The unfavorable movement in
foreign currency exchange rates negatively impacted sales by
approximately $19 million in the second quarter of 2011, compared
with the year-earlier quarter.
The company serves a variety of end-markets and the
diversification in end markets enables the company to post strong
results even in an uncertain economic environment.
On a year-over-year basis, Amphenol stated that the strength in
industrial, commercial aerospace and telecommunications and data
communications equipment markets more than offset the decline in
the defense and wireless markets.
Product-wise, Interconnect products generated sales of $985.5
million, up 4.4% year over year. Cable products generated sales of
$75.6 million, up 2.2% year over year.
Gross margin came in at 31.5%, up from 31.0% in the previous
quarter, but marginally down from 31.6% in the year-ago quarter.
Operating margin improved to 19.4% from 18.9% in the previous
quarter, but declined from 21.1% in the year-ago quarter.
During the quarter, Amphenol purchased 2.1 million shares.
Amphenol ended the quarter with cash and cash equivalents of $646.0
million, up from $620.9 million at the end of the previous quarter.
Debt at the end of the quarter increased to $1,454.5 million, up
from $1,316.8 million at the end of the previous quarter. Earlier,
Amphenol increased the quarterly dividend to $0.105 per share.
Assuming stable economic conditions and current currency
exchange rates including a relatively weaker euro, Amphenol
projects sales between $1.080 billion and $1.100 billion in the
second quarter of 2012. Earnings per share (excluding
one-time items) are forecasted between $0.87 and $0.90.
For 2012, management now projects revenues between $4.210
billion and $4.250 billion, up from its earlier estimate of
revenues between $4.105 billion and $4.190 billion and up 7% - 8%
from 2011. Earnings per share are expected between $3.38 and
$3.44, an increase from the previous estimate of $3.30 and $3.38
and up 11% - 13% from 2011.
We maintain a Neutral recommendation on the stock. Our
recommendation is supported by a Zacks #3 Rank, which translates
into a short-term rating of Hold.
AMPHENOL CORP-A (APH): Free Stock Analysis
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