Molex expects first-quarter profit below estimates
(Reuters) - Electronic components maker Molex Inc (MOLX.O) forecast first-quarter profit below analysts' estimates but said it was counting on several new products and the pre-Christmas build up to drive revenue growth.
Molex expects to earn between 37 cents and 41 cents per share, for the first quarter, on revenue of between $900 million and $940 million.
Analysts on average were expecting earnings of 43 cents per share, on revenue of $911.1 million, according to Thomson Reuters I/B/E/S.
"The September quarter typically experiences a strong sequential sales uptick... the disappointing EPS guidance seems to speak to margin challenges at the company," Topeka Capital Markets' analyst Brian White wrote in a note.
White, who has a "sell" rating on the stock, expects demand to weaken around the December quarter after the holiday ramp.
Net income rose to $72.0 million, or 40 cents per share, in the fourth quarter, from $64.9 million, or 36 cents per share a year earlier.
Revenue fell 6 percent to $858.5 million.
Analysts had expected quarterly earnings of 38 cents per share, on revenue of $880.5 million.
Backlog for the quarter grew 10.5 percent helped by direct orders for new products.
Shares of the company were down 4 percent at $25.60 on Wednesday morning on the Nasdaq.
(Reporting by Kartick Jagtap in Bangalore; Editing by Supriya Kurane)