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Amphenol’s (APH - Free Report) fourth-quarter 2022 adjusted earnings of 78 cents per share beat the Zacks Consensus Estimate by 4%. The earnings figure increased 11.4% year over year.
Net sales increased 7% year over year to $3.24 billion and beat the consensus mark by 3.6%. Organically, net sales increased 8%.
The top line benefited from robust growth across broadband communications, commercial air, automotive and military markets, and moderate growth in the industrial market.
Amphenol Corporation Price, Consensus and EPS Surprise
Amphenol shares moved down 5% following the results. Its shares have lost 4% in the past year, outperforming the Zacks Computer & Technology sector’s decline of 17.9%.
Quarterly Details
Harsh Environment solutions’ (24.6% of net sales) sales were $795.4 million, up 10.3% from the year-ago quarter.
Communications Solutions’ (44.3% of net sales) sales were $1.44 billion, up 1.3% year over year.
Interconnect and Sensor Systems Solutions’ (31.1% of net sales) sales were $1 billion, up 13.5% year over year.
The gross margin, on a GAAP basis, expanded 90 basis points (bps) year over year to 32%.
Selling, general and administrative expenses (SG&A), as a percentage of revenues, increased 20 bps on a year-over-year basis to 11.2%.
The adjusted operating margin expanded 80 bps on a year-over-year basis to 20.9%.
Balance Sheet
As of Dec 31, 2022, Amphenol had cash and cash equivalents worth $1.43 billion, higher than $1.25 billion as of Sep 30, 2022.
Total debt was $4.58 billion as of Dec 31, 2022, compared with $4.75 billion as of Sep 30, 2022.
In the quarter, the company purchased 2.3 million shares for $170 million. Amphenol also paid out dividends of $119 million.
Acquisitions
Amphenol acquired the North American cable and global base station antenna businesses of RFS in late December 2022.
Amphenol announced the acquisition of Control Measure Regulation Group (CMR) this month.
Based in France and with facilities located in Tunisia, China and India, CMR manufactures cable assemblies and complex interconnect assemblies for the industrial market, particularly for heavy vehicle engine applications.
CMR has annual sales of approximately $75 million.
Guidance
Amphenol expects first-quarter 2023 earnings between 65 cents and 67 cents per share, down 3% to flat year over year. Revenues are anticipated between $2.840 billion and $2.900 billion, indicating a 2-4% year-over-year decline.
Amphenol anticipates the acquired businesses to generate sales of $100 million in 2023.
Image: Bigstock
Amphenol's (APH) Q4 Earnings Beat Estimates, Revenues Rise Y/Y
Amphenol’s (APH - Free Report) fourth-quarter 2022 adjusted earnings of 78 cents per share beat the Zacks Consensus Estimate by 4%. The earnings figure increased 11.4% year over year.
Net sales increased 7% year over year to $3.24 billion and beat the consensus mark by 3.6%. Organically, net sales increased 8%.
The top line benefited from robust growth across broadband communications, commercial air, automotive and military markets, and moderate growth in the industrial market.
Amphenol Corporation Price, Consensus and EPS Surprise
Amphenol Corporation price-consensus-eps-surprise-chart | Amphenol Corporation Quote
Amphenol shares moved down 5% following the results. Its shares have lost 4% in the past year, outperforming the Zacks Computer & Technology sector’s decline of 17.9%.
Quarterly Details
Harsh Environment solutions’ (24.6% of net sales) sales were $795.4 million, up 10.3% from the year-ago quarter.
Communications Solutions’ (44.3% of net sales) sales were $1.44 billion, up 1.3% year over year.
Interconnect and Sensor Systems Solutions’ (31.1% of net sales) sales were $1 billion, up 13.5% year over year.
The gross margin, on a GAAP basis, expanded 90 basis points (bps) year over year to 32%.
Selling, general and administrative expenses (SG&A), as a percentage of revenues, increased 20 bps on a year-over-year basis to 11.2%.
The adjusted operating margin expanded 80 bps on a year-over-year basis to 20.9%.
Balance Sheet
As of Dec 31, 2022, Amphenol had cash and cash equivalents worth $1.43 billion, higher than $1.25 billion as of Sep 30, 2022.
Total debt was $4.58 billion as of Dec 31, 2022, compared with $4.75 billion as of Sep 30, 2022.
In the quarter, the company purchased 2.3 million shares for $170 million. Amphenol also paid out dividends of $119 million.
Acquisitions
Amphenol acquired the North American cable and global base station antenna businesses of RFS in late December 2022.
Amphenol announced the acquisition of Control Measure Regulation Group (CMR) this month.
Based in France and with facilities located in Tunisia, China and India, CMR manufactures cable assemblies and complex interconnect assemblies for the industrial market, particularly for heavy vehicle engine applications.
CMR has annual sales of approximately $75 million.
Guidance
Amphenol expects first-quarter 2023 earnings between 65 cents and 67 cents per share, down 3% to flat year over year. Revenues are anticipated between $2.840 billion and $2.900 billion, indicating a 2-4% year-over-year decline.
Amphenol anticipates the acquired businesses to generate sales of $100 million in 2023.
Zacks Rank & Stocks to Consider
Currently, Amphenol has a Zacks Rank #3 (Hold).
Roper (ROP - Free Report) , SAP (SAP - Free Report) and RingCentral (RNG - Free Report) are some better-ranked stocks that investors can consider in the broader sector. All three companies currently have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Roper shares have moved up 4.5% in the past year. ROP is set to report its fourth-quarter 2022 results on Jan 27, 2023.
SAP shares have moved down 12.2% in the past year. SAP is set to report fourth-quarter fiscal 2022 results on Jan 26.
RingCentral shares have moved down 75.9% in the past year. RNG is set to report fourth-quarter 2022 results on Feb 15, 2023.