Amphenol's (APH) Q2 Earnings Beat Estimates, Revenues Down Y/Y
Amphenol’s APH second-quarter 2023 adjusted earnings of 72 cents per share beat the Zacks Consensus Estimate by 7.46%. The earnings figure decreased 4% year over year.
Net sales decreased 3% year over year to $3.054 billion but beat the consensus mark by 4.34%. Organically, net sales decreased 4%.
The top line suffered from lower revenues across IT datacom, mobile networks and mobile devices end markets.
Quarterly Details
Harsh Environment Solutions’ (27% of net sales) sales were $888.9 million, up 12% from the year-ago quarter’s levels.
Communications Solutions’ (37.9% of net sales) sales were $1.16 billion, down 16% year over year.
Amphenol Corporation Price, Consensus and EPS Surprise
Amphenol Corporation price-consensus-eps-surprise-chart | Amphenol Corporation Quote
Interconnect and Sensor Systems Solutions’ (33.4% of net sales) sales were $1 billion, up 4% year over year.
Gross margin, on a GAAP basis, expanded 50 basis points (bps) year over year to 32.5%.
Selling, general and administrative expenses, as a percentage of revenues, increased 70 bps on a year-over-year basis to 12%.
Adjusted operating margin contracted 40 bps on a year-over-year basis to 20.3%.
Balance Sheet
As of Jun 30, 2023, Amphenol had cash and cash equivalents worth $1.50 billion, unchanged sequentially.
Total debt was $4.32 billion as of Jun 30, 2023 compared with $4.56 billion as of Mar 31, 2023.
During the quarter, the company purchased 2 million shares for $154 million. It also paid dividends of $125 million.
Guidance
Amphenol expects third-quarter 2023 earnings between 72 cents and 74 cents per share, indicating a decline between 8% and 10% year over year. Revenues are anticipated between $3.040 billion and $3.1 billion.
Zacks Rank & Stocks to Consider
Currently, Amphenol carries a Zacks Rank #4 (Sell).
Shares of the company have returned 10.7% in the year-to-date period, underperforming the Zacks Computer & Technology sector’s growth of 40.2%.
Tyler Technologies TYL, Airbnb ABNB and Fortinet FTNT are some better-ranked stocks that investors can consider in the broader sector, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Tyler shares have gained 26.6% year to date. TYL is set to report its second-quarter 2023 results on Jul 27.
Airbnb shares have gained 73.9% year to date. ABNB is set to report its second-quarter 2023 results on Aug 3.
Fortinet shares have gained 60.2% year to date. FTNT is set to report its second-quarter 2023 results on Aug 3.
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