Amphenol’s ( APH Quick Quote APH - Free Report) fourth-quarter 2020 adjusted earnings of $1.13 per share beat the Zacks Consensus Estimate by 10.8%. Moreover, the figure increased 15% year over year. Net sales increased 13% year over year to $2.426 billion and beat the consensus mark by 12.8%. Organically, net sales increased 11%. The top line benefited from robust growth in the mobile devices, automotive and industrial end-markets. Quarterly Details
Interconnect Products and Assemblies’ (96.1% of net sales) sales were up 13.6% from the year-ago quarter to $2.331 billion. Moreover, Cable Products and Solutions sales were $95.5 million, up 1.7% year over year.
Gross margin on a GAAP basis was unchanged on a year-over-year basis to 31.6%.
Selling, general and administrative expenses (SG&A) as a percentage of revenues decreased 60 bps on a year-over-year basis to 11%.
Adjusted operating margin expanded 60 bps on a year-over-year basis to 20.6%. Segment-wise, Interconnect Products and Assemblies’ operating margin grew 60 bps on a year-over-year basis to 21.6%. Cable Products and Solutions’ operating margin expanded 10 bps to 0.4%.
As of Dec 31, 2020, Amphenol had cash and cash equivalents worth $1.70 billion, higher than $1.46 billion as of Sep 30, 2020.
During the quarter, the company repurchased 1.5 million shares of its common stock for $182 million and paid dividends of $75 million. Amphenol also announced a 2-for-1 stock split, effective Mar 4, 2021. Acquisitions
Amphenol completed the acquisitions of Positronic and El-Cab in the reported quarter.
On Dec 9, 2020 Amphenol announced that it has inked a definitive agreement to acquire MTS Systems. On Jan 19, 2021 the company announced an agreement to divest the MTS Test & Simulation business to Illinois Tool Works following the close of the MTS acquisition. Guidance
Amphenol expects first-quarter 2021 earnings between 90 cents and 94 cents per share (45-47 cents per share post-split). Revenues are anticipated between $2.120 and $2.180 billion, representing 14-17% year-over-year growth.
The Zacks Consensus Estimate for first-quarter earnings is pegged at 94 cents, implying 32.4% growth from the figure reported in the year-ago quarter. The consensus mark for revenues stands at $2.09 billion, suggesting 12.2% growth from the year-ago quarter’s reported figure. Zacks Rank & Stocks to Consider
Currently, Amphenol has a Zacks Rank #2 (Buy).
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