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Amphenol (APH) Q1 Earnings Beat Estimates, Revenues Rise Y/Y
Amphenol’s APH first-quarter 2022 adjusted earnings of 67 cents per share beat the Zacks Consensus Estimate by 9.84%. The figure increased 28.8% year over year.
Net sales increased 24.2% year over year to $2.95 billion and beat the consensus mark by 7.8%. Organically, net sales increased 17%.
The top line benefited from robust growth across all end markets and benefits from the acquisition program.
Amphenol shares were up 0.29% following the results. Shares are down 21.6% year to date, outperforming the Zacks Computer & Technology sector’s plunge of 23.2%.
Amphenol Corporation Price, Consensus and EPS Surprise
Amphenol Corporation price-consensus-eps-surprise-chart | Amphenol Corporation Quote
Quarterly Details
Harsh Environment solutions (24.6% of net sales) sales were up 15.9% from the year-ago quarter to $727.6 million.
Communications Solutions (44.7% of net sales) sales were $1.32 billion, up 28.4% year over year.
Interconnect and Sensor Systems Solutions (30.6% of net sales) sales were $904.2 million, up 25.4% year over year.
Gross margin, on a GAAP basis, expanded 80 basis points (bps) year over year to 31.4%.
Selling, general and administrative expenses (SG&A), as a percentage of revenues, increased 40 bps on a year-over-year basis to 11.4%.
Adjusted operating margin expanded 40 bps on a year-over-year basis to 20%.
Balance Sheet
As of Mar 31, 2022, Amphenol had cash and cash equivalents worth $1.30 billion, higher than $1.24 billion as of Dec 31, 2021.
Total debt was $4.93 billion as of Mar 31, 2022 compared with $4.80 billion as of Dec 31, 2021.
During the quarter, the company purchased 2.1 million shares for $171 million. Amphenol also paid dividends of $87 million.
Guidance
Amphenol expects second-quarter 2022 earnings between 66 cents and 68 cents per share, indicating 8% to 11% year-over-year growth. Revenues are anticipated between $2.890 billion and $2.950 billion, indicating 9-11% year-over-year growth.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 65 cents per share, implying 6.56% growth from the figure reported in the year-ago quarter. The consensus mark for revenues stands at $2.87 billion, suggesting 7.96% growth from the year-ago quarter’s reported figure.
Zacks Rank & Stocks to Consider
Currently, Amphenol has a Zacks Rank #3 (Hold).
Camtek CAMT, CDW CDW and Fabrinet FN are some better-ranked stocks that investors can consider in the broader sector. All the three stocks has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CAMT shares are down 34.6% compared with sector’s decline of 23.3%. The company is set to report first-quarter 2022 on May 12, 2022.
CDW shares are down 20.3% year to date. The company is set to report first-quarter 2022 results on May 4.
Fabrinet shares are down 18.4% year to date. FN is set to report third-quarter fiscal 2022 results on May 2.
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