), a leading producer of electronic systems, reported strong
first quarter 2013 results with earnings per share (excluding
one-time items) of 87 cents compared to 77 cents in the year-ago
quarter. The first quarter 2013 earnings beat the Zacks Consensus
Estimate by a penny. The GAAP EPS for the reported quarter was 94
cents, primarily due to a one-time tax gain of 7 cents per share.
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Sales came in at $1,079.8 million in first quarter 2013 versus
$981.6 million in the year-earlier quarter and missed the Zacks
Consensus Estimate of $1,081 million. The sales growth was driven
by healthy inorganic and organic growth and robust performances
across diversified markets led by mobile devices, commercial
aerospace, broadband communications and industrial.
Amphenol received strong orders worth $1.120 billion in the first
quarter 2013, representing a book-to-bill of 1.04 to 1. Operating
margin for the company improved to 19.2%, up 30 basis points year
Segment wise, Cable business represented 8% of total sales in
first quarter 2013 and was up 14% year over year, primarily due
to accretive acquisitions. The Interconnect business, which
accounted for 92% of sales, was up 10% year over year.
In terms of end markets, revenue from
Information Technology and Data Communication
accounted for 19% of the total sales in the reported quarter, up
5% year over year primarily due to robust contributions from
servers and storage equipment.
: Sales from this end market accounted for 13% of total sales in
first quarter 2013, flat year over year due to moderate
purchasing activity by defense equipment manufacturers.
: Aerospace market accounted for 6% of total sales in the
reported quarter, an increase of 15% year over year. The
year-over-year increase was driven by higher demand from jetliner
production and launch of new airplane platforms.
: Sales from this segment increased 21% year over year and
accounted for 18% of the total sales. Management expects new
technologies of mobile phones to deliver strong performance in
the coming quarters.
: Sales accounted for 13% of the total revenue in first
quarter 2013, up 8.0% year over year driven by acquisitions.
: Sales were up 14% on a year-over-year basis, accounting for 8%
of the total revenue. The year-over-year increase was driven by
benefits of Holland acquisition offset by a moderate demand by
the U.S. and international cable operators.
: Sales from this segment accounted for 12% of total sales in the
quarter and jumped 9% year over year primarily driven by an
increase in production volumes, coupled with growth related to
new electronics applications.
: Sales from this segment increased 13% year over year in the
reported quarter and accounted for 10% of the total. Management
is particularly encouraged by the growth in mobile infrastructure
During the quarter, Amphenol purchased 1.2 million shares for $85
million. As of Mar 31, 2013, cash and cash equivalents stood at
$735.0 million, up from $690.8 million in Dec 31, 2012. Long-term
debt stood at $1,596.1 million, down from $1,606.2 million in
Despite the uncertainties prevailing in the global economy,
Amphenol remains bullish regarding its strong revenues and
earnings outlook. The ongoing revolution in electronics enables
the company to capitalize on these opportunities and strengthen
its position in the market. The company remains focused on its
strategy of market and geographic diversification to expand its
Amphenol projects sales between $1.115 billion and $1.140 billion
in second quarter 2013 and EPS (excluding one-time items) between
92 cents and 95 cents. For 2013, management projects revenues
between $4.580 billion and $4.655 billion, up 7%-8% from 2012.
EPS for 2013 is expected between $3.76 and $3.85, up 8%-11% from
the previous year.
Amphenol currently has a Zacks Rank #3 (Hold). Other stocks that
look promising and are worth a look now are
), each carrying a Zacks Rank #2 (Buy).