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Amphenol (APH) Q2 Earnings Beat Estimates, Revenues Rise Y/Y

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Amphenol's APH second-quarter 2021 adjusted earnings of 61 cents per share beat the Zacks Consensus Estimate by 10.9%. The figure increased 53% year over year.

Net sales increased 34% year over year to $2.654 billion and beat the consensus mark by 7.6%. Organically, net sales increased 22%.

The top line benefited from robust growth in the automotive, industrial, military, and broadband end-markets.

Quarterly Details

Interconnect Products and Assemblies’ (95.8% of net sales) sales were up 33.9% from the year-ago quarter to $2.54 billion. Cable Products and Solutions sales were $112.6 million, up 26.5% year over year.

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

Gross margin, on a GAAP basis, expanded 140 basis points (bps) to 39.6% year over year.

Selling, general and administrative expenses (SG&A) as a percentage of revenues decreased 70 bps on a year-over-year basis to 11.7%.

Adjusted operating margin expanded 200 bps on a year-over-year basis to 20%.

Balance Sheet and Acquisition

As of Jun 30, 2021, Amphenol had cash and cash equivalents worth $1.24 billion, higher than $2.32 billion as of Mar 31, 2021.

Total debt was $5.24 billion as of Jun 30, 2021.

During the quarter, the company purchased 2.5 million shares for $167 million. Amphenol also paid dividends of $87 million, resulting in total capital returned to shareholders during the second quarter being $254 million.

Amphenol announced the acquisition of Unlimited Services of Wisconsin during the quarter, which was completed in late April.

Guidance

Amphenol expects third-quarter 2021 earnings between 60 cents and 62 cents per share, indicating 9% to 13% year-over-year growth. Revenues are anticipated between $2.640 and $2.700 billion, indicating 14-16% year-over-year growth.

The Zacks Consensus Estimate for third-quarter earnings is pegged at 51 cents, implying 24.3% growth from the figure reported in the year-ago quarter. The consensus mark for revenues stands at $2.28 billion, suggesting 14.6% growth from the year-ago quarter’s reported figure.

Zacks Rank & Other Stocks to Consider

Currently, Amphenol has a Zacks Rank #2 (Buy).

Similar-ranked stocks are Bruker BRKR and Carrier Global CARR.

Carrier Global is set to report its quarterly earnings on Jul 29. Bruker and CyberArk are scheduled to report the same on Aug 2 and 12, respectively.

A better-ranked stock in the broader technology sector is CyberArk Software CYBR, which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.


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Amphenol Corporation (APH) : Free Stock Analysis Report

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