Molex Incorporated First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Molex Incorporated (NASDAQ:MOLX) will unveil its latest earnings on Tuesday, October 23, 2012. Molex manufactures electronic components, including switches, integrated products, and electrical and fiber optic interconnection products and systems.

Molex Incorporated Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 40 cents per share, a decline of 13% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 43 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 40 cents during the last month. Analysts are projecting profit to rise by 7.1% compared to last year’s $1.67.

Past Earnings Performance: The company fell in line with estimates last quarter after topping forecasts the quarter before. After coming in above the mean estimate by one cent in the third quarter of the last fiscal year, the company fell in line with expectations by reporting profit of 38 cents per share last quarter.

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Stock Price Performance: Between July 24, 2012 and October 17, 2012, the stock price rose $3.05 (12.8%), from $23.87 to $26.92. The stock price saw one of its best stretches over the last year between December 30, 2011 and January 12, 2012, when shares rose for nine straight days, increasing 8.8% (+$2.10) over that span. It saw one of its worst periods between April 27, 2012 and May 18, 2012 when shares fell for 16 straight days, dropping 17.3% (-$4.82) over that span.

A Look Back: In the fourth quarter of the last fiscal year, profit fell 6.9% to $72 million (41 cents a share) from $77.3 million (44 cents a share) the year earlier, meeting analyst expectations. Revenue fell 6% to $858.5 million from $913.7 million.

Wall St. Revenue Expectations: Analysts are projecting a decline of 3% in revenue from the year-earlier quarter to $886 million.

Key Stats:

The company is trying to use this earnings announcement to rebound from profit declines in the last three quarters. Net income fell 18.2% in the second quarter of the last fiscal year, by 4.8% in the third quarter of the last fiscal year and again in the fourth quarter of the last fiscal year.

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 4.9% in the second quarter of the last fiscal year and 4.3% in third quarter of the last fiscal year before falling again in the fourth quarter of the last fiscal year of the last fiscal year.

Analyst Ratings: With six analysts rating the stock as a buy, one rating it as a sell and six rating it as a hold, there are indications of a bullish outlook.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.34 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 2.41 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 3.9% to $886.9 million while assets rose 1% to $2.08 billion.

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

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