APH - Amphenol Corp - All nine covering analysts have raised their earnings estimates for the current year

Amphenol Corporation did the classic "beat and raise" when it announced its first-quarter results. Results were driven by growth in several segments, including the mobile device, wireless infrastructure, military and commercial aerospace markets. Beating estimates has become old hat to APH. The average surprise over the past four quarters is 5.6%.

Full Analysis

Amphenol Corporation (APH) designs, manufactures, and markets electrical, electronic and fiber optic connectors, interconnect systems, and coaxial and flat-ribbon cable worldwide.

The company produces a range of interconnect products and assemblies primarily for voice, video, and data communication systems; commercial aerospace and military systems; automotive and mass transportation applications; and industrial and factory automation equipment.

Earnings Bonanza

In mid-April, the company reported strong first-quarter profits that rose 25%, beating the Street. Earnings rose to $97.5 million, or 54 cents per share, from $77.7 million, or 43 cents per share, in the year-ago period. Analysts expected 51 cents per share. Revenue rose 18 percent to $770.7 million from $651.1 million. The effect of converting strong foreign currencies to dollars boosted sales by about $22 million, the company said.

Results were driven by growth in several segments, including the mobile device, wireless infrastructure, military and commercial aerospace markets. Additionally, Amphenol completed the acquisition of a French manufacturer during the first quarter. The company, which makes interconnect and electronic packaging products for the aerospace market, has annual sales of $28 million and expands Amphenol's product offerings in the aerospace market.

Increased Guidance

APH lifted its full-year profit guidance as well. The company now expects earnings between $2.26 and $2.31 per share on sales of $3.21 billion to $3.26 billion. Analysts, on average, anticipate full-year earnings of $2.23 per share on sales of $3.15 billion.

Amphenol Chairman and CEO, Martin H. Loeffler, stated: “We are very pleased to report a strong start to 2008 with first quarter sales of $771 million and earnings per share of $.54. Sales grew 18% over last year. Growth was broad based reflecting the benefits of a diverse market footprint with particular strength in the mobile device, wireless infrastructure, military and commercial aerospace markets."

Beating estimates has become old hat to APH. The average surprise over the past four quarters is 5.6%. All nine covering analysts have raised their earnings estimates for the current year over the past month. During that time, estimates have increased nine cents to $2.32 per share.

Content Courtesy: Zacks Investment Research

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