Amphenol Drops Most in Four Years on Lower ForecastMadeline McMahon
Amphenol Corp., which makes fiber-optic connectors and other telecommunications equipment for companies such as Apple Inc., fell the most in more than four years after cutting its profit and sales forecasts for the year.
The shares slid 9.7 percent to $76.35, the biggest one-day drop since December 2008. Before the tumble, the stock had climbed 31 percent this year.
Amphenol lowered its forecast for 2013 earnings to $3.73 to $3.79 a share from an earlier projection of $3.76 to $3.85. Revenue will reach $4.49 billion to $4.54 billion, down from a prior view of $4.58 billion to $4.66 billion, the Wallingford, Connecticut-based company said today in a statement.
Amphenol, whose customers also include Samsung Electronics Co. and Verizon Communications Inc., said it’s finding the mobile-device market increasingly difficult to predict. The weaker numbers reflect lower-than-expected demand for the gadgets, said Steven Fox, an analyst at Cross Research in Livingston, New Jersey.
“This is a company that has an incredible track record of not missing estimates,” said Fox, who advises buying the shares. “It’s a reflection of more conservative orders from smartphone and tablet makers.”
Amphenol has beat analysts’ profit estimates each quarter since the end of 2005, according to data compiled by Bloomberg. It last cut a profit forecast in 2011.
Amphenol’s second-quarter earnings were 95 cents a share, exceeding analysts’ projections of 94 cents a share, according to data compiled by Bloomberg.
Apple, based in Cupertino, California, is scheduled to report earnings July 23 for the quarter that ended in June. In April, it announced a sales forecast for the quarter that fell short of analysts’ estimates.