We recently reiterated our Neutral recommendation on
Earnings estimates for 2012 have moved up after the company
reported better-than-expected results for the first quarter of 2012
and upgraded guidance for full-year 2012.
Amphenol posted a net income of 77 cents per share in the first
quarter of 2012, up from 69 cents in the fourth quarter of 2011 and
72 cents in the year-ago quarter. The reported net income beat the
Zacks Consensus Estimate by a penny.
Sales came in at $982.0 million, up 4.4% year over year and 3.5%
sequentially. Management's guidance range was at $960 billion to
$970 billion. The favorable movement in foreign currency exchange
rates positively impacted sales by approximately $4 million in the
first quarter of 2012 compared with the year-earlier quarter.
For 2012, Amphenol now projects revenues between $4.105 billion
and $4.190 billion, up from its earlier estimate of $4.05
billion to $4.15 billion and an increase of 4% - 6% year over year.
Earnings per share are expected between $3.30 and $3.38, an
increase from the previous estimate of $3.23 and $3.34 and up 8% -
11% year over year.
Amphenol 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. Amphenol is optimistic about the
accelerating proliferation of new electronics in most of its end
markets, which the company believes will propel demand with time.
The ongoing revolution in electronics continues to create
opportunities for Amphenol.
Meanwhile, the company recently increased its quarterly dividend
to $0.105 per share from $0.015 per share. In the first quarter,
Amphenol repurchased 1.5 million shares for $82 million, which
leaves it with about 5.1 million shares remaining under its 20
million stock repurchase program, which expires in January
However, we would like to wait for a better entry point. Hence,
we maintain our Neutral recommendation. In the short run, we have a
Zacks #2 Rank on the stock, which translates into a short-term
rating of Buy driven by the recent increase in outlook by
AMPHENOL CORP-A (APH): Free Stock Analysis
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