Molex fourth quarter beats Wall Street view

By Reuters
Posted Aug. 4, 2010 at 10:48 a.m.

Electronic connector maker Molex Inc., based in Lisle, posted better-than-expected quarterly results, helped by strength in its data and telecom markets, and forecast first-quarter results above analysts’ estimates.

The company forecast first-quarter earnings of 42 cents to 46 cents a share, on revenue of $850 million to $880 million.

Analysts on average were expecting earnings of 39 cents a share, before special items, on revenue of $826.1 million, according to Thomson Reuters I/B/E/S.

Molex, whose customers include Dell, Ford Motor Co., Hewlett-Packard, IBM and Motorola, said bookings for the quarter were $910 million, up 58 percent from last year.

Order bookings rose 54 percent in the data market, which is showing evidence of increased enterprise spending in networking, servers and storage, a company executive said on a conference call with analysts.

The company also said smartphones were driving telecom market bookings, which increased 16 percent.

Data markets formed 22 percent of the company’s fourth-quarter revenue, while telecom formed 24 percent.

For the fourth quarter ended June 30, net income was $39.8 million, or 23 cents a share, compared with a loss of $220.5 million, or $1.27 a share a year ago.

Excluding items, the company, which competes with Tyco Electronics Ltd. and Amphenol Corp. earned 39 cents a share.

Revenue rose 48 percent to $847.3 million.

Analysts had expected earnings of 38 cents a share, before special items, on revenue of $820.1 million.

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