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Amphenol's (APH) Q1 Earnings Beat Estimates, Revenues Rise Y/Y

Amphenol’s APH first-quarter 2023 adjusted earnings of 69 cents per share beat the Zacks Consensus Estimate by 2.99%. The earnings figure increased 3% year over year.

Net sales increased 0.7% year over year to $2.97 billion and beat the consensus mark by 3.3%. Organically, net sales increased 8%.

The top line benefited from robust growth across commercial air, broadband communications, military, industrial and automotive markets, as well as a solid contribution from acquisitions.

Quarterly Details

Harsh Environment Solutions’ (28.7% of net sales) sales were $854.2 million, up 17.4% from the year-ago quarter’s levels.

Communications Solutions’ (37.9% of net sales) sales were $1.13 billion, down 14.7% year over year.

Amphenol Corporation Price, Consensus and EPS Surprise

Amphenol Corporation Price, Consensus and EPS Surprise
Amphenol Corporation Price, Consensus and EPS Surprise

Amphenol Corporation price-consensus-eps-surprise-chart | Amphenol Corporation Quote

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Interconnect and Sensor Systems Solutions’ (33.4% of net sales) sales were $993.1 million, up 9.8% year over year.

Gross margin, on a GAAP basis, expanded 30 basis points (bps) year over year to 31.7%.

Selling, general and administrative expenses, as a percentage of revenues, increased 20 bps on a year-over-year basis to 11.6%.

Adjusted operating margin expanded 10 bps on a year-over-year basis to 20.1%.

Balance Sheet

As of Mar 31, 2023, Amphenol had cash and cash equivalents worth $1.50 billion, higher than $1.43 billion as of Dec 31, 2022.

Total debt was $4.56 billion as of Mar 31, 2023 compared with $4.58 billion as of Dec 31, 2022.

During the quarter, the company purchased 2.1 million shares for $167 million. It also paid dividends of $125 million.

Guidance

Amphenol expects second-quarter 2023 earnings between 66 cents and 68 cents per share, indicating growth between 9% and 12% year over year. Revenues are anticipated between $2.890 billion and $2.950 billion.

Zacks Rank & Stocks to Consider

Currently, Amphenol carries a Zacks Rank #3 (Hold).

Shares of the company have declined 4.2% in the year-to-date period, underperforming the Zacks Computer & Technology sector’s gain of 15.1%.

Arista Networks ANET, DoorDash DASH and DigitalOcean DOCN are some better-ranked stocks that investors can consider in the broader sector. All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Arista Networks shares have gained 28.8% year to date. ANET is set to report its first-quarter 2023 results on May 1.

DoorDash shares have gained 18.6% year to date. DASH is set to report its first-quarter 2023 results on May 4.

DigitalOcean shares have gained 27.5% year to date. DOCN is set to report its first-quarter 2023 results on May 9.

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