Amphenol Corporation Reports Q3 2024 Results: Earnings Beat Estimates, Revenue Declines
Amphenol Corporation (APH) reported lower-than-expected revenue in the third quarter due to sluggish demand in the mobile network, mobile device, datacom, and broadband end markets. However, the company’s earnings beat analysts’ estimates.
Amphenol Corporation (APH) reported lower-than-expected revenue in the third quarter due to sluggish demand in the mobile network, mobile device, datacom, and broadband end markets. However, the company’s earnings beat analysts’ estimates.
Amphenol Corporation Reports Q3 2022 Results: Earnings Beat Estimates, Revenue Declines
Amphenol Corporation (APH) reported mixed results for the third quarter of 2022, with earnings per share (EPS) beating analysts’ expectations but revenue falling short. The company reported adjusted EPS of $1.01 per share, surpassing the Zacks Consensus Estimate of $0.98 per share. However, net sales decreased 7.6% year-over-year to $2.41 billion, missing the consensus mark of $2.45 billion.
The decline in net sales was primarily attributed to lower revenues across the Mobile Networks, Mobile Devices, and Datacom/Broadband end markets. Harsh Environment Solutions net sales came in at $458 million, a decrease from $484 million in the year-ago quarter. Communication Solutions net sales declined to $1.15 billion from $1.24 billion a year ago. Interconnect, Sensor, and System Solutions net sales also decreased to $804 million from $820 million year-over-year.
Despite the lower top-line results, Amphenol’s gross margin on a GAAP basis expanded by 120 basis points (bps) year-over-year. However, Selling, General, and Administrative (SG&A) expenses as a percentage of revenue increased by 100 bps year-over-year on a GAAP basis. As a result, the adjusted operating margin contracted by 80 bps year-over-year on a GAAP basis.
As of September 30, 2022, Amphenol had cash and cash equivalents worth $1.6 billion and total debt of $2.7 billion, compared to $2.2 billion and $2.6 billion, respectively, as of June 30, 2022. During the quarter, the company repurchased 2.3 million shares for $234 million and also paid dividends of $108 million. Amphenol also increased its quarterly dividend payout by 10 cents per share.
In terms of acquisitions, the company completed three acquisitions during the quarter, namely, Connor Manufacturing, Service & Microwave, and XMA Corporation. Amphenol also announced its intent to acquire PCTEL, a transaction expected to close in early 2023.
For the fourth quarter, Amphenol expects adjusted EPS in the range of $0.92 to $1.02 per share, indicating a decline of 11.8% to 3.8% year-over-year. Revenue is anticipated to be between $2.30 billion and $2.40 billion. The Zacks Consensus Estimate for the fourth quarter revenue is pegged at $2.37 billion, suggesting a decline of 6.4% year-over-year. The consensus EPS estimate is unchanged over the past 30 days. Amphenol currently carries a Zacks Rank #3 (Hold). Shares of the company have returned -10.9% year-to-date, underperforming the Zacks Computer Technology sector, which has declined -27.6% over the same period.