Despite a challenging macroeconomic environment, diversified electronics manufacturer Amphenol Corporation APH reported strong first-quarter 2016 results with healthy year-over-year increases in both adjusted earnings and revenues. Adjusted earnings for the reported quarter were 59 cents per share, which exceeded the Zacks Consensus Estimate and the year-ago tally by 3 cents and 2 cents, respectively, primarily driven by higher revenues.Amphenol Corporation (APH) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompanyImpressive adjusted earnings growth in the quarter was primarily attributable to Amphenol’s technology leadership and market and geographic diversification. It further reflected the company’s balanced organic and inorganic growth model. This was achieved on the back of a flexible cost structure, higher demand across almost all the end markets, diligent execution of operational plans and an agile and entrepreneurial management team.Net income (GAAP) for the quarter came in at $156.6 million, compared with $179.8 million in the year-ago quarter. The year-over-year decrease in GAAP earnings, despite top-line growth, was largely due to acquisition-related expenses and higher operating costs.RevenuesThe company recorded revenues of $1,451.2 million, up 9.3% year over year and well ahead of the Zacks Consensus Estimate of $1,401 million. The improved revenue performance was mostly driven by strength in the automotive, mobile networks, data communications and industrial markets, partially offset by declines in the mobile devices and military markets.Adjusted operating margin for the quarter declined to 18.6% from 19.6% in the year-ago quarter, owing to lower profitability in the Interconnect Products and Assemblies segment.Segment PerformanceSegment wise, Cable business sales represented 5.7% of total sales in the quarter and were down 1.2% year over year. Sales from the Interconnect business, which accounted for 94.3% of total sales, increased 10.1% year over year to $1,367.8 million.Operating income from the Interconnect business improved to $281.2 million during the quarter from $271.0 million in the year-ago quarter. Operating income from the Cable business increased to $11.1 million from $10.2 million in the prior-year period.AcquisitionDuring the quarter, Amphenol completed the acquisition of FCI Asia Pte Ltd from the affiliates of alternative investment firm Bain Capital for $1.275 billion. The acquisition is expected to be accretive to Amphenol’s earnings in 2016, excluding acquisition-related costs. The transaction is also expected to result in synergistic benefits with Amphenol’s strong operating discipline and FCI’s advanced technological support and experienced management team.Headquartered in Singapore, FCI manufactures interconnect solutions for the telecom, datacom, wireless communications and industrial markets. The acquisition is a strategic fit for Amphenol with FCI’s proven expertise in the development of high-speed, input-output, power and miniaturized interconnect products. This complimentary product portfolio has enriched the service offerings of Amphenol and enabled it to better serve its customers in various end markets.Balance Sheet & Cash FlowAmphenol generates solid cash flow, which gives management the opportunity to invest in product innovations, acquisitions and business development. At the same time, the company has historically returned significant cash through a combination of share repurchases and dividend to reward shareholders with risk-adjusted returns. During the quarter, Amphenol repurchased approximately 1 million shares pursuant to its stock repurchase program, bringing its tally till date to over 5.5 million shares.At the same time, the company entered into a new revolving credit facility during the quarter, which replaced the erstwhile $1.5 billion revolving credit facility and increased its borrowing capacity to $2.0 billion.Cash and cash equivalents stood at $687.0 million as of Mar 31, 2016, while long-term debt (excluding current portion) aggregated $2,866.2 million. Cash flow from operations for the reported quarter aggregated $194.2 million compared with $188.3 million in the prior-year quarter.OutlookDespite the uncertainties prevailing in the global economy, Amphenol has bullish revenue and earnings expectations. The ongoing revolution in electronics enables the company to capitalize on the opportunities and strengthen its position in the market. Amphenol also expects to leverage on the solid growth potential of FCI to drive robust performance in the future.Amphenol expects second-quarter 2016 sales in the range of $1.495 billion to $1.535 billion, representing a year-over-year increase of 11% to 14%. Adjusted earnings are expected to be in the range of 62 cents to 64 cents per share, representing a year-over-year increase of 7% to 10%. For full year 2016, the company currently expects sales in the range of $6.080 billion to $6.200 billion, representing a year-over-year increase of 9% to 11%. The company expects adjusted EPS for 2016 in the range of $2.56 to $2.62, an increase of 5% to 8% year over year, including accretive effect from the FCI acquisition.Amphenol currently has a Zacks Rank #2 (Buy). Some other better-ranked stocks that look promising include CalAmp Corp. CAMP, Fabrinet FN and Rogers Corporation ROG, each carrying a Zacks Rank #1 (Strong Buy).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ROGERS CORP (ROG): Free Stock Analysis Report FABRINET (FN): Free Stock Analysis Report CALAMP CORP (CAMP): Free Stock Analysis Report AMPHENOL CORP-A (APH): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research