APH: Margins Impress as M&A Helps

Amphenol (APH; $100.66; E/W) produced another Q4 “beat and meet”, albeit influenced by a surge in M&A during November and December as it acquired four companies with a combined ~$325mm in annual sales for $678mm….

TEL: Raise Rating to Outperform; Entering New Margin Era

We raise our rating on TE Connectivity (TEL; $143.63) from Equal-Weight to Outperform. We believe the stock is now breaking out of its trading range of the past two years on a path to new…

STX: First Look at FQ2 (Dec) Results and Outlook

Seagate (STX; $89.17; E/W) reported FQ2 (Dec) non-GAAP EPS of a profit of $0.12, which comfortably beat our estimate of a ($0.03) loss and the Street’s ($0.06) on sales of $1,555mm (vs. our $1,582mm and…

APH: First Look at Q4 Results and Outlook

Amphenol (APH; $101.25; E/W) reported Q4 non-GAAP EPS of $0.82, which beat our $0.76 and the Street’s $0.77 on sales of $3,328mm that were ahead of our $3,148mm and the Street’s $3,157mm. The company also…

TEL: First Look at FQ1 (Dec) Results and Outlook

TE Connectivity (TEL; $134.65; E/W) reported FQ1 (Dec) non-GAAP EPS of $1.84, which comfortably beat our $1.70 and the Street’s $1.71 despite some moderately lower than expected sales ($3,831mm vs. our $3,850mm and consensus of…

HYZN: Another Proof Point on Stationary Power Opportunity

Last Friday (1/19), Ballard Power Systems (BLDP; $3.34; NR) announced it successfully used “large format” hydrogen fuel cells to supply backup power to a data center through a partnership with Caterpillar (CAT; $288.35; NR) and…

Not All Bad News on the Electric Vehicle Front

We think there are some positives worth focusing on amongst all the electric vehicle (EV) hand wringing of recent weeks. For example, recent updates from direct current fast charging (DCFC) network operators EVgo (EVGO; $2.72;…

Will Minimum Q1 Visibility Reign In 2024 Bullishness?

We think a muted end to the December quarter, combined with ongoing uncertainty around the impact of high interest rates on capital spending-driven markets, and typical seasonal pressures to start the year suggests to us…

BDC: Expanding in India

Over the past several days, Belden (BDC; $72.71; E/W) announced it expanded its existing manufacturing facility in Pune, India, as well as opened a new Customer Innovation Center (CIC) in Bengaluru, India, as per plan….

GLW: Rolls Out Next Gen Gorilla Glass

Yesterday (1/17), Corning (GLW; $30.22; E/W) announced that Samsung Electronics’ just introduced Galaxy S24 Ultra smartphone will feature GLW’s new Gorilla Armor cover glass. As per a press release from GLW, Gorilla Armor is the…

A Mixed Bag of Year-End European Auto Data

This morning, the European Automobile Manufacturers Association released car registration data from the region for the month of December, which was slightly below seasonal trends. Specifically, European vehicle registrations in December (~20% of global demand)…

STX: Bumping Up Estimates

We are bumping up our FQ2E (Dec) EPS for Seagate (STX; $83.33; E/W) from ($0.13) to ($0.03) to account for management commentary in recent weeks that suggested some better HDD shipments in the quarter (measured…

FLEX: Adjusting Model for NXT Divestiture

We are updating our financial model for Flex (FLEX; $22.13; O/P) to account for the recently completed divestiture of Nextracker (NXT; $41.89; E/W) on January 2nd (“NXT Spin Coming Much Sooner Than Expected”; 12/18/23). The…

PLXS: Slow End to Quarter Leads to FQ1 Miss

Last night, Plexus (PLXS; $101.52; E/W) negatively pre-announced FQ1E (Dec) results. Specifically, PLXS now sees FQ1E sales of $980-985mm (-4% QoQ and -10% YoY at the mid-point), which is just 3% below the original guidance…

UBER: Last Call for Drizly

Yesterday (1/15), Uber Technologies’ (UBER; $63.51; O/P) Drizly on-demand alcohol marketplace in the U.S. sent out an email to customers, which disclosed its plans to cease operations at the end of March. Recall, Uber acquired…