Amphenol Corporation (APH - Free Report) designs and manufactures connectors and interconnecting systems that are used to transmit electrical and optical signals for a wide range of sophisticated electronic applications. The top-line growth of the company is expected to benefit from improved end-market demand, new product rollouts and market share gains.
However, bulk of APH’s revenues comes from sales to the communications industry, demand for which is subject to rapid technological change. As the extent of competition is increasing over time, investors have been eagerly awaiting for the company’s latest earnings report. In the last four trailing quarters, APH has reported a positive average earnings surprise of 3.8%, beating estimates thrice.
Currently, APH has a Zacks Rank #2 (Buy), but that could definitely change following the first-quarter 2016 earnings report which was just released. We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: APH beats on earnings. APH reported adjusted earnings of 73 cents, which exceeded the Zacks Consensus Estimate and the year-ago tally by 5 cents and 8 cents, respectively.
Revenues: Quarterly revenues beat estimates. APH recorded revenues of $1,635.9 million, well ahead of the Zacks Consensus Estimate of $1,571 million.
Key Stats to Note: APH is likely to perform well in the dynamic electronics marketplace due to its leading technology, higher demand across almost all the end markets, lean cost structure, diligent execution of operational plans and an experienced management team. Going forward, the company expects to continue with the momentum in its mobile devices and automotive markets, which will help drive organic growth further. Consequently, APH raised its guidance for full year 2016. The company also increased its quarterly dividend by 14% year over year to 16 cents per share.
Stock Price: With strong quarterly results and bullish outlook, shares prices were up in pre-market trading at the time of writing.
Check back our full write up on this APH earnings report later!
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