Amphenol’s (APH - Free Report) 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.
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 - Free Report) , DoorDash (DASH - Free Report) and DigitalOcean (DOCN - Free Report) 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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Amphenol’s (APH - Free Report) 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.
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 - Free Report) , DoorDash (DASH - Free Report) and DigitalOcean (DOCN - Free Report) 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.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
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