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Amphenol's (APH) Q3 Earnings Beat Estimates, Revenues Rise Y/Y

Zacks Equity Research
·4-min read

Amphenol’s APH third-quarter 2022 adjusted earnings of 80 cents per share beat the Zacks Consensus Estimate by 6.67%.

The earnings figure increased 23.1% year over year and was better than our estimate of 74 cents.

Net sales increased 16.9% year over year to $3.29 billion and beat the consensus mark by 6.82%. Organically, net sales increased 18%.

The net sales figure was much better than our estimate of $3.08 billion.

The top line benefited from robust growth across all end markets and benefits from the acquisition program, partially offset by unfavorable forex.

Amphenol Corporation Price, Consensus and EPS Surprise

Amphenol Corporation Price, Consensus and EPS Surprise
Amphenol Corporation Price, Consensus and EPS Surprise

Amphenol Corporation price-consensus-eps-surprise-chart | Amphenol Corporation Quote

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Amphenol shares were up 0.44% following the results. Shares are down 16.8% year to date, outperforming the Zacks Computer & Technology sector’s decline of 32.5%.

Quarterly Details

Harsh Environment solutions’ (24.1% of net sales) sales were $793.8 million, up 12.3% from the year-ago quarter. Our estimate was pegged at $768.2 million.

Communications Solutions’ (46.1% of net sales) sales were $1.52 billion, up 19.4% year over year. Our estimate was pegged at $1.37 billion.

Interconnect and Sensor Systems Solutions’ (29.8% of net sales) sales were $983.4 million, up 17% year over year. Our estimate was pegged at $947.6 million.

Gross margin, on a GAAP basis, expanded 60 basis points (bps) year over year to 32.2%.

Selling, general and administrative expenses (SG&A), as a percentage of revenues, decreased 20 bps on a year-over-year basis to 11.1%.

Adjusted operating margin expanded 40 bps on a year-over-year basis to 20.7%.

Balance Sheet

As of Sep 30, 2022, Amphenol had cash and cash equivalents worth $1.25 billion, lower than $1.33 billion as of Jun 30, 2022.

Total debt was $4.75 billion as of Sep 30, 2022 compared with $4.86 billion as of Jun 30, 2022.

During the quarter, the company purchased 2.4 million shares for $170 million. Amphenol also paid dividends of $119 million.

On Oct 25, 2022, Amphenol approved a 5% increase in its quarterly dividend to 21 cents per share. The new dividend will be paid on Jan 11, 2023, to shareholders of record on Dec 20, 2022.

Guidance

Amphenol expects fourth-quarter 2022 earnings between 73 cents and 75 cents per share, indicating 4-7% year-over-year growth. Revenues are anticipated between $3.090 billion and $3.150 billion, indicating 2-4% year-over-year growth.

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 77 cents per share, implying 10% growth from the figure reported in the year-ago quarter. The consensus mark for revenues stands at $3.16 billion, suggesting 4.43% growth from the year-ago quarter’s reported figure.

For 2022, Amphenol expects earnings between $2.95 and $2.97 per share, indicating 19-20% year-over-year growth. Revenues are anticipated between $12.474 billion and $12.534 billion, indicating 15% year-over-year growth.

The Zacks Consensus Estimate for 2022 earnings is pegged at $2.94 per share, implying 18.55% growth from the figure reported in 2021. The consensus mark for revenues stands at $12.33 billion, suggesting 13.4% growth from 2021’s reported figure.

Zacks Rank & Stocks to Consider

Currently, Amphenol has a Zacks Rank #3 (Hold).

Airbnb ABNB, Wolfspeed WOLF and Blackbaud BLKB are some better-ranked stocks that investors can consider in the broader sector. All three stocks have a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Airbnb shares are down 28.8% year to date. ABNB is set to report its third-quarter 2022 results on Nov 1.

Wolfspeed shares are down 5.9% year to date. WOLF is set to report first-quarter fiscal 2023 results on Oct 26.

Blackbaud shares are down 33.3% year to date. BLKB is set to report third-quarter 2022 results on Nov 1.


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