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Amphenol (APH) Q3 Earnings Beat Estimates, Revenues Rise Y/Y

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Amphenol’s (APH - Free Report) third-quarter 2021 adjusted earnings of 65 cents per share beat the Zacks Consensus Estimate by 3.2%. The figure increased 18.2% year over year.

Net sales increased 21.3% year over year to $2.82 billion and beat the consensus mark by 4.2%. Organically, net sales increased 13%.

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 21.5% from the year-ago quarter to $2.70 billion. Cable Products and Solutions' sales were $119.3 million, up 17.5% 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, contracted 10 basis points (bps) to 31.6% year over year.

Selling, general and administrative expenses (SG&A) as a percentage of revenues increased 20 bps on a year-over-year basis to 11.3%.

Adjusted operating margin contracted 20 bps on a year-over-year basis to 20.3%.

Balance Sheet

As of Sep 30, 2021, Amphenol had cash and cash equivalents worth $1.30 billion, higher than $1.24 billion as of Jun 30, 2021.

Total debt was $5.25 billion as of Sep 30, 2021.

During the quarter, the company purchased 2.3 million shares for $171 million. Amphenol also paid dividends of $87 million, resulting in total capital returned to shareholders during the third quarter being $258 million.

Amphenol also announced a 38% increase in dividend from 0.145 cents to 20 cents per share.

Guidance

Amphenol expects fourth-quarter 2021 earnings between 61 cents and 63 cents per share, indicating 7% to 11% year-over-year growth. Revenues are anticipated between $2.690 billion and $2.750 billion, indicating 11-13% year-over-year growth.

The Zacks Consensus Estimate for fourth-quarter earnings is pegged at 63 cents, implying 14.6% growth from the figure reported in the year-ago quarter. The consensus mark for revenues stands at $2.70 billion, suggesting 16.4% growth from the year-ago quarter’s reported figure.

For 2021, Amphenol expects earnings between $2.39 and $2.41 per share, indicating 28% to 29% year-over-year growth. Revenues are anticipated between $10.540 billion and $10.600 billion, indicating 28-29% year-over-year growth.

Zacks Rank & Other Stocks to Consider

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

Similar-ranked stocks are Apple (AAPL - Free Report) , Trimble (TRMB - Free Report) and Cognex (CGNX - Free Report) . You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Apple, Trimble and Cognex are set to report their quarterly earnings on Oct 28, Nov 3 and Nov 4.


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