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Why Is Amphenol (APH) Down 4.9% Since Last Earnings Report?
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A month has gone by since the last earnings report for Amphenol (APH - Free Report) . Shares have lost about 4.9% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Amphenol due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Amphenol’s first-quarter 2022 adjusted earnings of 67 cents per share beat the Zacks Consensus Estimate by 9.84%. The figure increased 28.8% year over year.
Net sales increased 24.2% year over year to $2.95 billion and beat the consensus mark by 7.8%. Organically, net sales increased 17%.
The top line benefited from robust growth across all end markets and benefits from the acquisition program.
Amphenol shares were up 0.29% following the results. Shares are down 21.6% year to date, outperforming the Zacks Computer & Technology sector’s plunge of 23.2%.
Quarterly Details
Harsh Environment solutions (24.6% of net sales) sales were up 15.9% from the year-ago quarter to $727.6 million.
Communications Solutions (44.7% of net sales) sales were $1.32 billion, up 28.4% year over year.
Interconnect and Sensor Systems Solutions (30.6% of net sales) sales were $904.2 million, up 25.4% year over year.
Gross margin, on a GAAP basis, expanded 80 basis points (bps) year over year to 31.4%.
Selling, general and administrative expenses (SG&A), as a percentage of revenues, increased 40 bps on a year-over-year basis to 11.4%.
Adjusted operating margin expanded 40 bps on a year-over-year basis to 20%.
Balance Sheet
As of Mar 31, 2022, Amphenol had cash and cash equivalents worth $1.30 billion, higher than $1.24 billion as of Dec 31, 2021.
Total debt was $4.93 billion as of Mar 31, 2022 compared with $4.80 billion as of Dec 31, 2021.
During the quarter, the company purchased 2.1 million shares for $171 million. Amphenol also paid dividends of $87 million.
Guidance
Amphenol expects second-quarter 2022 earnings between 66 cents and 68 cents per share, indicating 8% to 11% year-over-year growth. Revenues are anticipated between $2.890 billion and $2.950 billion, indicating 9-11% year-over-year growth.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 65 cents per share, implying 6.56% growth from the figure reported in the year-ago quarter. The consensus mark for revenues stands at $2.87 billion, suggesting 7.96% growth from the year-ago quarter’s reported figure.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
Currently, Amphenol has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, 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.
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Why Is Amphenol (APH) Down 4.9% Since Last Earnings Report?
A month has gone by since the last earnings report for Amphenol (APH - Free Report) . Shares have lost about 4.9% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Amphenol due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Amphenol Q1 Earnings Beat Estimates, Revenues Rise Y/Y
Amphenol’s first-quarter 2022 adjusted earnings of 67 cents per share beat the Zacks Consensus Estimate by 9.84%. The figure increased 28.8% year over year.
Net sales increased 24.2% year over year to $2.95 billion and beat the consensus mark by 7.8%. Organically, net sales increased 17%.
The top line benefited from robust growth across all end markets and benefits from the acquisition program.
Amphenol shares were up 0.29% following the results. Shares are down 21.6% year to date, outperforming the Zacks Computer & Technology sector’s plunge of 23.2%.
Quarterly Details
Harsh Environment solutions (24.6% of net sales) sales were up 15.9% from the year-ago quarter to $727.6 million.
Communications Solutions (44.7% of net sales) sales were $1.32 billion, up 28.4% year over year.
Interconnect and Sensor Systems Solutions (30.6% of net sales) sales were $904.2 million, up 25.4% year over year.
Gross margin, on a GAAP basis, expanded 80 basis points (bps) year over year to 31.4%.
Selling, general and administrative expenses (SG&A), as a percentage of revenues, increased 40 bps on a year-over-year basis to 11.4%.
Adjusted operating margin expanded 40 bps on a year-over-year basis to 20%.
Balance Sheet
As of Mar 31, 2022, Amphenol had cash and cash equivalents worth $1.30 billion, higher than $1.24 billion as of Dec 31, 2021.
Total debt was $4.93 billion as of Mar 31, 2022 compared with $4.80 billion as of Dec 31, 2021.
During the quarter, the company purchased 2.1 million shares for $171 million. Amphenol also paid dividends of $87 million.
Guidance
Amphenol expects second-quarter 2022 earnings between 66 cents and 68 cents per share, indicating 8% to 11% year-over-year growth. Revenues are anticipated between $2.890 billion and $2.950 billion, indicating 9-11% year-over-year growth.
The Zacks Consensus Estimate for second-quarter earnings is pegged at 65 cents per share, implying 6.56% growth from the figure reported in the year-ago quarter. The consensus mark for revenues stands at $2.87 billion, suggesting 7.96% growth from the year-ago quarter’s reported figure.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
Currently, Amphenol has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Following the exact same course, 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.