Amphenol's (APH) Q3 Earnings Beat Estimates, Revenues Down Y/Y
Amphenol’s APH third-quarter 2023 adjusted earnings of 78 cents per share beat the Zacks Consensus Estimate by 5.41%. The earnings figure decreased 2.5% year over year.
Net sales decreased 3% year over year to $3.199 billion and beat the consensus mark by 3.94%. Organically, net sales decreased 5%.
The top line suffered from lower revenues across the mobile networks, mobile devices, IT datacom, broadband and industrial end-markets.
Quarterly Details
Harsh Environment Solutions’ (27.7% of net sales) sales came in at $887.3 million, up 11.8% from the year-ago quarter’s levels.
Communications Solutions’ (40% of net sales) sales were $1.27 billion, which decreased 15.7% 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’ (32.3% of net sales) sales were $1.03 billion, up 5% year over year.
Gross margin, on a GAAP basis, expanded 60 basis points (bps) year over year to 32.8%.
Selling, general and administrative expenses, as a percentage of revenues, increased 80 bps on a year-over-year basis to 11.9%.
Adjusted operating margin contracted 20 bps on a year-over-year basis to 20.8%.
Balance Sheet
As of Sep 30, 2023, Amphenol had cash and cash equivalents worth $1.73 billion, up from $1.5 billion as of Jun 30.
Total debt was $4.29 billion as of Sep 30, 2023 compared with $4.32 billion as of Jun 30.
During the quarter, the company purchased 1.7 million shares for $149 million. It also paid dividends of $125 million.
Amphenol also increased quarterly dividend payout by 5% to 22 cents per share.
Acquisitions
The company completed three acquisitions — Connor Manufacturing Services, Q Microwave and XMA Corporation — in the reported quarter.
Amphenol also announced its intent to buy PCTEL. The transaction is expected to close by early 2024.
Guidance
Amphenol expects fourth-quarter 2023 earnings between 75 cents and 77 cents per share, indicating a decline between 1% and 4% year over year. Revenues are anticipated between $3.090 billion and $3.15 billion.
The Zacks Consensus Estimate for fourth-quarter 2023 revenues is pegged at $3.13 billion, suggesting a 3.32% decline year over year. The consensus estimate is pegged at 76 cents per share, unchanged over the past 30 days.
Amphenol expects 2023 earnings between $2.94 and $2.96 per share, indicating a decline between 1% and 2% year over year. Revenues are anticipated between $12.317 billion and $12.377 billion.
The Zacks Consensus Estimate for 2023 revenues is pegged at $12.24 billion, suggesting a 3.05% decline year over year. The consensus estimate is pegged at $2.92 per share, unchanged over the past 30 days.
Zacks Rank & Stocks to Consider
Currently, Amphenol carries a Zacks Rank #3 (Hold).
Shares of the company have returned 4.1% in the year-to-date period, underperforming the Zacks Computer & Technology sector’s growth of 34.5%.
GoDaddy GDDY, Pinterest PINS and Intel INTC 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.
GoDaddy shares have gained 0.0% year to date. GDDY is set to report its third-quarter 2023 results on Nov 2.
Pinterest shares have gained 10.3% year to date. PINS is set to report its third-quarter 2023 results on Oct 30.
Intel shares have gained 30.9% year to date. INTC is set to report its third-quarter 2023 results on Oct 26.
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