Amphenol Corp (APH) Q3 2023 Earnings: Sales and EPS Exceed Guidance Despite Sales Decrease
Amphenol Corp (NYSE:APH) reports Q3 2023 sales and Adjusted Diluted EPS exceeding the high end of their guidance, despite a 3% sales decrease from the prior year.
The company announces a 5% increase in its quarterly dividend, from $0.21 per share to $0.22 per share.
Amphenol Corp (NYSE:APH) closed three acquisitions since their July earnings call: Connor Manufacturing Services, Q Microwave, and XMA Corporation.
The company expects Q4 2023 sales to be in the range of $3.090 billion to $3.150 billion, representing a 3% to 5% decline over the prior year quarter.
Amphenol Corp (NYSE:APH) released its Q3 2023 earnings report on October 25, 2023. Despite a 3% decrease in sales from the prior year, the company's sales and Adjusted Diluted EPS exceeded the high end of their guidance. The sales decrease was driven by moderations in the mobile networks, mobile devices, IT datacom, broadband, and industrial markets, partially offset by growth in the commercial air, military, and automotive markets, as well as contributions from the company's acquisition program.
Financial Highlights
Amphenol Corp (NYSE:APH) reported net sales of $3,199.2 million for Q3 2023, a decrease from $3,295.2 million in Q3 2022. The company's operating income for the quarter was $657.9 million, down from $681.1 million in the same period last year. The company's net income attributable to Amphenol Corporation was $513.9 million, up from $496.6 million in Q3 2022.
Acquisitions and Dividend Increase
During Q3 2023, Amphenol Corp (NYSE:APH) closed three acquisitions: Connor Manufacturing Services, Q Microwave, and XMA Corporation. These acquisitions expand the company's offering of high-technology interconnect products across various markets. Furthermore, the company's Board of Directors approved a 5% increase in the quarterly dividend, from $0.21 per share to $0.22 per share, to be paid on January 10, 2024.
Outlook
For Q4 2023, Amphenol Corp (NYSE:APH) expects sales to be in the range of $3.090 billion to $3.150 billion, representing a 3% to 5% decline over the prior year quarter. Adjusted Diluted EPS is expected to be in the range of $0.75 to $0.77, representing a 1% to 4% reduction from the fourth quarter of 2022. For the full year 2023, the company expects sales to be in the range of $12.317 billion to $12.377 billion, representing a 2% decline over the prior year, while Adjusted Diluted EPS is expected to be in the range of $2.94 to $2.96, representing a 1% to 2% decline over the prior year.
Management Commentary
Amphenol President and CEO, R. Adam Norwitt, stated,
Despite the ongoing challenges and uncertainties around the world, we are very pleased with the Companys third quarter 2023 results. The revolution in electronics continues to accelerate, creating exciting long-term growth opportunities for Amphenol across each of our diversified end markets."
This article first appeared on GuruFocus.
