Fiber optic connectors and interconnect systems maker Amphenol Corp. (APH) reported Wednesday a profit for the fourth quarter that grew 15 percent from last year, reflecting improved operating margins and double-digit revenue growth.
Both adjusted earnings per share and quarterly sales topped analysts' expectations. The company also issued earnings and sales guidance for the first quarter as well as full-year 2015.
The company noted that the excellent performance is a direct result of its dynamic management team's ability to drive margin expansion through outstanding operational execution and an unrelenting focus on all elements of cost.
"We are pleased to report new records of performance in the fourth quarter 2014, with sales and EPS of $1.427 billion and $0.63 (excluding one-time items), up 15% and 19% over the comparable 2013 quarter. The Company achieved growth in most markets with particular strength in the automotive, industrial and mobile networks markets. This growth was driven both organically and through the Company's successful acquisition program," President and CEO Adam Norwitt said in a statement.
The Wallingford, Connecticut-based company reported net income of $193.5 million or $0.61 per share for the fourth quarter, higher than $167.9 million or $0.52 per share in the prior-year quarter.
Excluding one-time items, adjusted earnings for the quarter was $0.63 per share, compared to $0.53 per share in the year-ago quarter.
On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of $0.59 per share for the quarter. Analysts' estimates typically exclude special items.
The company noted that all per share and share amounts have been adjusted to reflect its 2-for-1 stock split effective October 9, 2014.
Net sales for the quarter grew 14 percent to a record $1.43 billion from $1.25 billion in the same quarter last year, and topped thirteen Wall Street analysts' consensus estimate of $1.37 billion. Currency translation decreased sales by about $22 million.
Interconnect products sales grew to $1.34 billion from $1.16 billion in the year-ago quarter, and cable products sale increased to $84.0 million from $81.6 million in the prior-year quarter.
The company also reported record adjusted operating margins of 20.2 percent in the latest quarter, up 50 basis points from last year.
Looking ahead for the first quarter of fiscal 2015, the company expects adjusted earnings in a range of $0.55 to $0.57 per share, on projected revenues between $1.286 billion and $1.326 billion, based on current currency exchange rates. Analysts project earnings of $0.57 per share, on quarterly revenues of $1.35 billion.
For fiscal 2015, the company currently projects adjusted earnings in the range of $2.41 to $2.49 per share, on anticipated revenues between $5.493 billion and $5.653 billion. Street is currently looking for full-year 2015 earnings of $2.47 per share, on annual revenues of $5.69 billion.
"We believe we can continue to perform well in the dynamic electronics marketplace due to our leading technology, increasing positions with our customers in diverse markets, worldwide presence, lean cost structure, and agile, experienced and entrepreneurial management team," Norwitt added.
In Wednesday's regular trading session, APH is currently trading at $51.32, down $1.03 or 1.97% on a volume of 24,954 shares.
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