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Amphenol (APH) Q2 Earnings Beat Estimates, Revenues Rise Y/Y

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Amphenol's (APH - Free Report) second-quarter 2021 adjusted earnings of 61 cents per share beat the Zacks Consensus Estimate by 10.9%. The figure increased 53% year over year.

Net sales increased 34% year over year to $2.654 billion and beat the consensus mark by 7.6%. Organically, net sales increased 22%.

The top line benefited from robust growth in the automotive, industrial, military, and broadband end-markets.

Quarterly Details

Interconnect Products and Assemblies’ (95.8% of net sales) sales were up 33.9% from the year-ago quarter to $2.54 billion. Cable Products and Solutions sales were $112.6 million, up 26.5% year over year.
 

Amphenol Corporation Price, Consensus and EPS Surprise

Amphenol Corporation Price, Consensus and EPS Surprise

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

 

Gross margin, on a GAAP basis, expanded 140 basis points (bps) to 39.6% year over year.

Selling, general and administrative expenses (SG&A) as a percentage of revenues decreased 70 bps on a year-over-year basis to 11.7%.

Adjusted operating margin expanded 200 bps on a year-over-year basis to 20%.

Balance Sheet and Acquisition

As of Jun 30, 2021, Amphenol had cash and cash equivalents worth $1.24 billion, higher than $2.32 billion as of Mar 31, 2021.

Total debt was $5.24 billion as of Jun 30, 2021.

During the quarter, the company purchased 2.5 million shares for $167 million. Amphenol also paid dividends of $87 million, resulting in total capital returned to shareholders during the second quarter being $254 million.

Amphenol announced the acquisition of Unlimited Services of Wisconsin during the quarter, which was completed in late April.

Guidance

Amphenol expects third-quarter 2021 earnings between 60 cents and 62 cents per share, indicating 9% to 13% year-over-year growth. Revenues are anticipated between $2.640 and $2.700 billion, indicating 14-16% year-over-year growth.

The Zacks Consensus Estimate for third-quarter earnings is pegged at 51 cents, implying 24.3% growth from the figure reported in the year-ago quarter. The consensus mark for revenues stands at $2.28 billion, suggesting 14.6% growth from the year-ago quarter’s reported figure.

Zacks Rank & Other Stocks to Consider

Currently, Amphenol has a Zacks Rank #2 (Buy).

Similar-ranked stocks are Bruker (BRKR - Free Report) and Carrier Global (CARR - Free Report) .

Carrier Global is set to report its quarterly earnings on Jul 29. Bruker and CyberArk are scheduled to report the same on Aug 2 and 12, respectively.

A better-ranked stock in the broader technology sector is CyberArk Software (CYBR - Free Report) , which sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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