UPDATE 2-Amphenol Q1 beats Street, sees strong Q2; shares jump

* Q1 adj EPS $0.55 vs est. $0.51

* Q1 net sales up 14 pct

* CEO: Degree of recovery in 2010 less than certain

* Shares hit new year-high
(Adds details, analyst comments; updates share movement)

By Bijoy Anandoth Koyitty

BANGALORE, April 20 (BestGrowthStock) – Amphenol Corp (APH.N: ), a
maker of electronic and fiber optic connectors, reported
better-than-expected quarterly results and forecast a strong
second quarter, sending its shares up 7 percent to a new

Strengthening demand in end markets such as information
technology and data communications equipment, automotive,
industrial, and broadband boosted revenue, Chief Executive Adam
Norwitt said in a statement.

“It seems like they had very good operating leverage which
implies better product mix, stable pricing and some internal
cost reductions driving the earnings beat and the guidance,”
Longbow Research analyst Shawn Harrison said.

For the second quarter, the company forecast earnings of 60
cents to 62 cents a share, on revenue of $820 million to $835

Analysts on average were expecting earnings of 55 cents a
share, on revenue of $786.6 million, according to Thomson
Reuters I/B/E/S.

Amphenol, which has facilities in countries such as China,
Mexico, India and Brazil, also said it sees an opportunity to
expand with the improving world economy.

International markets like China and Brazil drove profits
at U.S. industrial companies in the first quarter, many of
which beat Wall Street estimates and raised their full-year

Companies beating analyst estimates on Tuesday included
Illinois Tool Works Inc (ITW.N: ), Eaton Corp (ETN.N: ) and Parker
Hannifin Corp (PH.N: ) — all of them diversified industrial
manufacturers with broad geographic exposure. [ID:nN20254819]

Amphenol, which competes with Molex Inc (MOLX.O: ) and Tyco
Electronics Ltd (TEL.N: ), said it bought an Asian manufacturer
of specialty industrial interconnect products with sales of
about $25 million.

“This acquisition may be a sign that there is more to come,
particularly since Amphenol has $400 million plus in cash on
hand,” analyst Harrison said.

Consolidation has been an ongoing theme in the highly
fragmented connector market, the analyst added.

For the first quarter, Amphenol reported net income of
$98.4 million, or 56 cents a share, compared with $74.4
million, or 43 cents a share, in the year-ago period.

Excluding items, it earned 55 cents a share.

Net sales rose 14 percent to $771 million.

Analysts were expecting earnings of 51 cents a share,
before items, on revenue of $749.2 million.

Shares of the company rose to a high of $47.20 before
paring some of their gains and were up 6 percent at $46.74 in
mid-day trade on the New York Stock Exchange.

Stock Basics

(Reporting by Bijoy Koyitty in Bangalore; Editing by Maju
Samuel, Anne Pallivathuckal)

UPDATE 2-Amphenol Q1 beats Street, sees strong Q2; shares jump