Post Earnings Coverage as Amphenol Posted All Time High Quarterly Sales, Record EPS, and Record Cash Flow from Operations

Upcoming AWS Coverage on Hubbell Post-Earnings Results

LONDON, UK / ACCESSWIRE / February 7, 2017 / Active Wall St. announces its post-earnings coverage on Amphenol Corp. (NYSE: APH). The Company released its fourth quarter and fiscal 2016 results on January 25, 2017. The maker of fiber-optic products outperformed top- and bottom-line expectations. Register with us now for your free membership at:

http://www.activewallst.com/register/

One of Amphenol’s competitors within the Diversified Electronics space, Hubbell Inc, (NYSE: HUBB), released its Q4 2016 financial results on Tuesday, January 31, 2017. AWS will be initiating a research report on Hubbell in the coming days.

Today, AWS is promoting its earnings coverage on APH; touching on HUBB. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=APH

http://www.activewallst.com/registration-3/?symbol=HUBB

Earnings Reviewed

For the quarter ended December 31, 2016, Amphenol reported record sales of $1.65 billion compared to $1.431 billion for Q4 2015. Currency translation had the effect of decreasing the Company’s sales by approximately $20 million in Q4 2016 compared to the 2015 same period. The Company’s revenue numbers surpassed analysts’ expectations of $1.61 billion. The Company’s FY16 sales totaled 6.29 billion compared to $5.57 billion for Q4 2015.

Amphenol’s operating income was $339 million for Q4 2016, while operating margin was a record 20.5% in the reported quarter compared to 20.2% in Q4 2015.

For Q4 2016, Amphenol reported net income of 235.4 million compared to $200.1 million in Q4 2015. On per share basis, the Company posted record diluted earnings per share (EPS) of $0.75 compared to $0.63 for Q4 2015, exceeding Wall Street’s consensus of $0.72. For the twelve months ended December 31, 2016, Amphenol’s GAAP diluted EPS was $2.61 compared to $2.41 for last year’s comparable period.

Segment Results

For Q4 2016, Amphenol’s cable business, which comprised 6% of the Company’s sales, was up 18% from Q4 2015, with organic growth as well as the impact of acquisitions. In the cable segment margins remained flat at 14.9% in the reported quarter compared to the last quarter, and it improved 12.5% from last year. The increase in margins from last year related primarily to strong operating execution on the additional volume as well as the benefit from favourable impact of commodities.

The interconnect business, which comprised 94% of Amphenol’s sales, was up 15% from last year with organic growth as well as the impact of FCI as well as other acquisitions. In the interconnect segment, margins were unchanged compared to Q4 2015 at 22.4% and represented a slight increase over Q3 2016 of 22.2%, reflecting excellent operating execution throughout the business and a successful first year of improving performance for FCI, the largest acquisition in Company’s history.

Cash Flow & Balance Sheet

Amphenol’s cash flow from operations was a record $349 million in Q4 2016, or approximately 146% of net income, and for FY16 operating cash flow was also a record $1.08 billion, or approximately 129% of net income.

During the reported quarter, the Company repurchased 1.5 million shares completing its January 2015 stock repurchase plan of 10 million shares. On January 24, 2017, the Company’s Board of Directors authorized a new two-year open market stock repurchase plan for the purchase of up to $1 billion of the Company’s common stock.

Amphenol’s inventory was $929 million at the end of the year. At December 31, 2016, inventory days were 76 days, down three days compared to December 2015. Accounts receivable was approximately $1.3 billion at the end of December and days sales outstanding was 73 days, up approximately two days from December of 2015. Accounts payable was $678 million at the end of the year and payable days were 55 days, up approximately one day compared to December of last year.

At December 31, 2016, Amphenol’s cash and short-term investments were $1.2 billion, the majority of which is held outside the US. At year-end, the Company had issued $1 billion under its commercial paper program and the Company’s cash and availability under its credit facilities totaled approximately $2.2 billion at December 31, 2016. Total debt at December 31, 2016, was approximately $3 billion and net debt was approximately $1.8 billion.

On February 02, 2017, Amphenol’s Board of Directors approved Q1 2017 dividend on its Common Stock in the amount of $0.16 per share. The Company will pay this dividend on or about April 11, 2017, to shareholders of record as of March 20, 2017.

Outlook

For Q1 2017, Amphenol is forecasting sales in the range of $1.495 billion to $1.535 billion and diluted EPS in the range of $0.65 to $0.67. For FY17, the Company is expecting to achieve sales in the range of $6.340 billion to $6.500 billion, an increase over FY16 of 1% to 3% and diluted EPS of $2.84 to $2.92, an increase of 9% to 12% over FY1616 GAAP Diluted EPS and an increase of 4% to 7% over FY16 adjusted diluted EPS.

Stock Performance

At the closing bell, on Monday, February 06, 2017, Amphenol’s stock marginally slipped 0.58%, ending the trading session at $67.07. A total volume of 1.70 million shares were traded at the end of the day, which was higher than the 3-month average volume of 1.19 million shares. In the last six months and previous twelve months, shares of the Company have rallied 12.44% and 36.64%, respectively. The Company’s shares are trading at a PE ratio of 25.66 and have a dividend yield of 0.95%. At Monday’s closing price, the stock’s net capitalization stands at $20.59 billion.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the “Author”) and is fact checked and reviewed by a third party research service company (the “Reviewer”) represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the “Sponsor”), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you’re a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com

Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street

ReleaseID: 454451