Amphenol (APH) Q2 Earnings Beat Estimates, Revenues Rise Y/Y
Amphenol’s APH second-quarter 2022 adjusted earnings of 75 cents per share beat the Zacks Consensus Estimate by 11.94%. The figure increased 23% year over year.
Net sales increased 18.2% year over year to $3.14 billion and beat the consensus mark by 7.2%. Organically, net sales increased 18%.
The top line benefited from robust growth across all end markets and benefits from the acquisition program.
Amphenol shares were up 4.99% following the results. Shares are down 20.5% year to date, outperforming the Zacks Computer & Technology sector’s plunge of 29.3%.
Amphenol Corporation Price, Consensus and EPS Surprise
Amphenol Corporation price-consensus-eps-surprise-chart | Amphenol Corporation Quote
Quarterly Details
Harsh Environment solutions (25.2% of net sales) sales were $790.4 million, up 13.5% from the year-ago quarter.
Communications Solutions (43.9% of net sales) sales were $1.38 billion, up 23.6% year over year.
Interconnect and Sensor Systems Solutions (30.9% of net sales) sales were $967.9 million, up 14.9% year over year.
Gross margin, on a GAAP basis, expanded 20 basis points (bps) year over year to 32%.
Selling, general and administrative expenses (SG&A), as a percentage of revenues, decreased 40 bps on a year-over-year basis to 11.3%.
Adjusted operating margin expanded 70 bps on a year-over-year basis to 20.7%.
Balance Sheet
As of Jun 30, 2022, Amphenol had cash and cash equivalents worth $1.33 billion, higher than $1.30 billion as of Mar 31, 2022.
Total debt was $4.86 billion as of Jun 30, 2022 compared with $4.93 billion as of Mar 31, 2022.
During the quarter, the company purchased 2.7 million shares for $186 million. Amphenol also paid dividends of $119 million.
Guidance
Amphenol expects third-quarter 2022 earnings between 73 cents and 75 cents per share, indicating 12-15% year-over-year growth. Revenues are anticipated between $3.040 billion and $3.100 billion, indicating 8-10% year-over-year growth.
The Zacks Consensus Estimate for third-quarter earnings is pegged at 71 cents per share, implying 9.23% growth from the figure reported in the year-ago quarter. The consensus mark for revenues stands at $3.03 billion, suggesting 7.62% growth from the year-ago quarter’s reported figure.
Zacks Rank & Stocks to Consider
Currently, Amphenol has a Zacks Rank #3 (Hold).
Aspen Technology AZPN, Fastly FSLY and DigitalOcean DOCN are some better-ranked stocks that investors can consider in the broader sector. All three stocks have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Aspen shares are up 23.8% year to date. AZPN is set to report fourth-quarter fiscal 2022 results on Aug 8.
Fastly shares are down 69.7% year to date. FSLY is set to report second-quarter 2022 results on Aug 3.
DigitalOcean shares are down 52.5% year to date. DOCN is set to report second-quarter fiscal 2022 results on Aug 8.
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