Molex Misses on the Top and Bottom Lines

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Molex (NAS: MOLX) reported earnings on Jan. 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q2), Molex missed on revenues and missed on earnings per share.

Compared to the prior-year quarter, revenue dropped and earnings per share dropped significantly.

Gross margins improved, operating margins shrank, and net margins dropped.

Revenue details
Molex reported revenue of $858 million. The 14 analysts polled by S&P Capital IQ expected to see sales of $890 million. Sales were 4.9% lower than the prior-year quarter's $901 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.38. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.40 per share on the same basis. GAAP EPS of $0.36 for Q2 were 20% lower than the prior-year quarter's $0.45 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 30.7%, 60 basis points better than the prior-year quarter. Operating margin was 11.6%, 80 basis points worse than the prior-year quarter. Net margin was 7.5%, 120 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $874 million. On the bottom line, the average EPS estimate is $0.38.

Next year's average estimate for revenue is $3.6 billion. The average EPS estimate is $1.70.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 134 members out of 148 rating the stock outperform, and 14 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 53 give Molex a green thumbs-up, and one gives it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Molex is hold, with an average price target of $23.75.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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