Amphenol (APH) is another way to play the growth in the use of mobile devices.
Company Description
Amphenol is one of the largest manufacturers of interconnect products in the world. The company designs, manufactures and markets electrical, electronic and fiber optic connectors, coaxial and flat-ribbon cable, and interconnect systems. The primary end markets for the company’s products are communications and information processing markets.
Growth Driven by Mobile Devices
Amphenol provides a broad range of components with presence on more than 50% of the world’s annual mobile phone production. Amphenol manufactures essentially all of the interconnect devices found in mobile phones, PDAs and other mobile devices.
The company indicated that its end markets continue to show improvement, and that it is well-positioned to gain market share. Amphenol’s long-term growth prospects are solid because the demand for mobile devices remains strong.
Fourth-Quarter Results
On January 21, the company reported fourth-quarter sales of $758.3 million in the fourth quarter of 2009, roughly flat on a year-over-year basis but up 6% sequentially. Earnings per share came in at $0.52, easily beating the Zacks Consensus Estimate of $0.49.
The company also announced that it will pay $0.015 per share dividend on or about April 7 to shareholders of record as of March 17.
For the first quarter, Amphenol expects to report sales between $735 million and $750 million and EPS of $0.49 to $0.51. The Zacks Consensus Estimate for the first quarter is $0.51 per share.
Earnings Estimates Moving Higher
Analysts remain bullish on Amphenol. In the last 90 days, the Zacks Consensus Estimate for 2010 has increased from $2.11 to $2.22, while the Zacks Consensus Estimate for 2011 is up from $2.37 to $2.55.
