Molex Inc. Earnings: Another Quarter of Falling Net Income, Stock FALLS

S&P 500 (NYSE:SPY) component Molex Incorporated (NASDAQ:MOLX) reported its results for the fourth quarter. Molex manufactures electronic components, including switches, integrated products, and electrical and fiber optic interconnection products and systems.

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Molex Incorporated Earnings Cheat Sheet

Results: Net income for Molex Incorporated fell to $72 million (40 cents per share) vs. $77.3 million (44 cents per share) a year earlier. This is a decline of 6.9% from the year-earlier quarter.

Revenue: Fell 6% to $858.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Molex Incorporated beat the mean analyst estimate of 38 cents per share. Analysts were expecting revenue of $848.3 million.

Quoting Management: “We are encouraged with our margin performance in the June quarter even though revenue was below our expectations. More importantly, bookings have now increased sequentially in Q3 and Q4 and new product design activity remains extremely strong,” commented Martin P. Slark, Chief Executive Officer.

Key Stats:

The company has now seen its net income fall for three quarters in a row. In the third quarter, net income fell 4.8% from the year earlier, while the figure fell 18.2% in the second quarter.

Revenue has dropped for three consecutive quarters. In the third quarter, revenue declined 4.3% to $837.1 million while the figure fell 4.9% in the second quarter from the year earlier.

The company has now beaten estimates the last two quarters. In the third quarter, it topped expectations with net income of 35 cents versus a mean estimate of net income of 34 cents per share.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from 46 cents a share to 43 cents over the last ninety days. For the fiscal year, the average estimate has moved down from $1.60 a share to $1.58 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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