I remain upbeat about the shares of diversified electronics manufacturer Amphenol. The company’s advantages include technology leadership and market and geographic diversification. I also like the company’s balanced organic and inorganic growth model, which was achieved on the back of a lean and flexible cost structure and an agile and entrepreneurial management team.Amphenol’s financials for the second quarter of 2016 were solid. Revenues increased 15% y-o-y to $1.548 bn comfortably beating consensus estimate of $1.515 bn. The improvement was mostly driven by strength in the automotive, mobile networks, data communications and industrial markets, partially offset by declines in the commercial aerospace markets and military markets. Operating income grew 15.2% to $300.3 mn, and operating margin came in at 19.4%. Adjusted earnings per share jumped 16.1% to 65 cents surpassing analysts’ average projection by 2 cents.Amphenol ended the quarter with cash and cash equivalents of $794 mn and long-term debt (excluding current portion) of $2.835 bn. In Q2, the company generated cash flow from operations of $437.8 mn and repurchased approximately 1 mn shares. A quarterly dividend was 14 cents per share, which offers annualized dividend yield of around 1%.After the end of Q2, Amphenol acquired two companies, Auxel and Custom Cable, as a part of its strategic acquisition program. Based in France, Auxel is a leading manufacturer of power busbars and power interconnect solutions worldwide, while Custom Cable is a Florida-based firm offering fiber optic and copper cable assemblies. The company expects these acquisitions to strengthen its global foothold and enhance its product offering in strategic markets.Despite the uncertainties prevailing in the global economy, Amphenol’s management slightly improved its full-year 2016 guidance, taking into account accretive effects from the recent acquisitions. The company now expects 2016 sales in the range of $6.120-6.200 bn, representing a y-o-y increase of 10-11%. Adjusted EPS for 2016 is forecast to rise 7-9% to $2.60-2.64.I expect Amphenol’s shares to resume growth, with medium-term target at $65. $APH, Amphenol Corporation / 1440