A month has gone by since the last earnings report for Amphenol (APH Quick QuoteAPH - Free Report) . Shares have added about 0.1% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Amphenol due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Amphenol Q4 Earnings Beat Estimates, Revenues Rise Y/Y

Amphenol’s fourth-quarter 2021 adjusted earnings of 70 cents per share beat the Zacks Consensus Estimate by 11.1%. The figure increased 27.3% year over year.

Net sales increased 24.8% year over year to $3.03 billion and beat the consensus mark by 10.4%. Organically, net sales increased 18%.

The top line benefited from robust growth in the IT data communications, industrial, mobile networks, commercial air, automotive, and broadband end-markets.

Quarterly Details

Interconnect Products and Assemblies’ (96.2% of net sales) sales were up 24.9% from the year-ago quarter to $2.91 billion. Cable Products and Solutions' sales were $116.4 million, up 21.9% year over year.

Gross margin, on a GAAP basis, contracted 50 basis points (bps) year over year to 31.1%.

Selling, general and administrative expenses (SG&A), as a percentage of revenues, increased 10 bps on a year-over-year basis to 11%.

Adjusted operating margin contracted 50 bps on a year-over-year basis to 19.6%.

Balance Sheet

As of Dec 31, 2021, Amphenol had cash and cash equivalents worth $1.24 billion, higher than $1.30 billion as of Sep 30, 2021.

Total debt was $4.80 billion as of Dec 31, 2021 compared with $5.25 billion as of Sep 30, 2021.

During the quarter, the company purchased 2.1 million shares for $171 million. Amphenol also paid dividends of $87 million.

Acquisitions & Divestiture

In the reported quarter, Amphenol completed the acquisition of Halo Technology Limited and closed the divestiture of its MTS Test & Simulation business. Amphenol successfully completed seven acquisitions in 2021.

New Divisions

Amphenol created three new divisions, namely, Harsh Environment Solutions (“HES”), Communications Solutions (“CS”) and Interconnect and Sensor Systems (“ISS”), effective Jan 1, 2022.

HES, CS and ISS replace the company’s previous two reportable segments — Interconnect Products and Assemblies; and Cable Products and Solutions.

Guidance

Amphenol expects first-quarter 2022 earnings between 59 cents and 61 cents per share, indicating 13% to 17% year-over-year growth. Revenues are anticipated between $2.690 billion and $2.750 billion, indicating 13-16% year-over-year growth.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates review.

VGM Scores

At this time, Amphenol has a nice Growth Score of B, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Amphenol has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.