best of group

When a company repeatedly buys back its stock, it indicates that the company continues to see value in its shares. Amphenol has recently raised its buyback plan.

Amphenol's board has authorized a doubling of its ongoing share-repurchase program, raising the approval to 20 million shares. There are currently 178.5 million shares outstanding. The closing date has been extended to Jan. 31, 2010, and as of Jan. 17, the company had repurchased about 9.7 million shares under the existing program.

In terms of the numbers, Amphenol beat expectations for fourth-quarter sales and EPS. Sales were up 18% in U.S.-dollar terms and 14% in local currencies, and the company achieved good profitability, with diluted EPS jumping 28% to $0.55. They are expecting double-digit sales and profit this year, while they expressed caution over an economic slowdown. Revenue was projected at between $3.1 billion and $3.18 billion, and EPS at between $2.18 and $2.25. Additionally, the company has a P/E/G ratio of 0.92 and has achieved a strong ROE of 32.58%.

Analyst Mario Ricchio of Zacks Investment Research downgraded Amphenol from buy to hold, while setting a price target of $42.25. Ricchio said in a recent note that he expects Amphenol's earnings growth to decelerate to 11% in fiscal 2008 from 40% in fiscal 2007, due to tough comps and economically sensitive end markets.

On Jan. 2, Stifel Nicolaus downgraded its rating from buy to hold, saying that the company would face great difficulty in achieving EPS growth of 20% this year. RBC Capital Markets, which has an outperform rating for Amphenol, said in its note last week that the stock price is likely to be driven by acquisitions.

Amphenol shares have fallen by $5 since the beginning the year, when they were trading around $45. Given the soft economic environment, I believe in the near-term, this stock could be quite volatile, but investors with longer-term horizons should do more homework on Amphenol.

Earnings Stability Rating: 4. Communications cable maker expands its share repurchase program from 10 million shares to 20 million Five-year earnings growth rate: 32%.

Amphenol Corporation designs, manufactures, and markets electrical, electronic, and fiber optic connectors, interconnect systems, and coaxial and flat-ribbon cables worldwide.

looks good

Reported 50c vs 37c (est was 46c) 17-Oct-07 BMO. In IBD group Elec-Component/Connectr. Has 4 quarters of +20% earnings increase. IBD rating A technical, A fundamental, D group technical, B+ group fundamental.

Will beat numbers in Q3. Al is the biggest exposure for this name.. so pay attention to Aluminum prices

Morgan Stanley upgrades Amphenol to overweight from equalweight, and sets a $43 price target.

Look at at the gains

Steady Growth. Fiber optics are just cool.