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Why Is Amphenol (APH) Up 12.3% 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 added about 12.3% 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 the most recent earnings report in order to get a better handle on the important catalysts.
Amphenol's Q3 Earnings Beat Estimates, Revenues Down Y/Y
Amphenol’s third-quarter 2023 adjusted earnings of 78 cents per share beat the Zacks Consensus Estimate by 5.41%. The earnings figure decreased 2.5% year over year.
Net sales decreased 3% year over year to $3.199 billion and beat the consensus mark by 3.94%. Organically, net sales decreased 5%.
The top line suffered from lower revenues across the mobile networks, mobile devices, IT datacom, broadband and industrial end-markets.
Quarterly Details
Harsh Environment Solutions’ (27.7% of net sales) sales came in at $887.3 million, up 11.8% from the year-ago quarter’s levels.
Communications Solutions’ (40% of net sales) sales were $1.27 billion, which decreased 15.7% year over year.
Interconnect and Sensor Systems Solutions’ (32.3% of net sales) sales were $1.03 billion, up 5% year over year.
Gross margin, on a GAAP basis, expanded 60 basis points (bps) year over year to 32.8%.
Selling, general and administrative expenses, as a percentage of revenues, increased 80 bps on a year-over-year basis to 11.9%.
Adjusted operating margin contracted 20 bps on a year-over-year basis to 20.8%.
Balance Sheet
As of Sep 30, 2023, Amphenol had cash and cash equivalents worth $1.73 billion, up from $1.5 billion as of Jun 30.
Total debt was $4.29 billion as of Sep 30, 2023 compared with $4.32 billion as of Jun 30.
During the quarter, the company purchased 1.7 million shares for $149 million. It also paid dividends of $125 million.
Amphenol also increased quarterly dividend payout by 5% to 22 cents per share.
Acquisitions
The company completed three acquisitions — Connor Manufacturing Services, Q Microwave and XMA Corporation — in the reported quarter.
Amphenol also announced its intent to buy PCTEL. The transaction is expected to close by early 2024.
Guidance
Amphenol expects fourth-quarter 2023 earnings between 75 cents and 77 cents per share, indicating a decline between 1% and 4% year over year. Revenues are anticipated between $3.090 billion and $3.15 billion.
Amphenol expects 2023 earnings between $2.94 and $2.96 per share, indicating a decline between 1% and 2% year over year. Revenues are anticipated between $12.317 billion and $12.377 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
Currently, Amphenol has an average Growth Score of C, a grade with the same score on the momentum front. 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 broadly trending upward for the stock, and the magnitude of these revisions has been net zero. 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) Up 12.3% Since Last Earnings Report?
A month has gone by since the last earnings report for Amphenol (APH - Free Report) . Shares have added about 12.3% 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 the most recent earnings report in order to get a better handle on the important catalysts.
Amphenol's Q3 Earnings Beat Estimates, Revenues Down Y/Y
Amphenol’s third-quarter 2023 adjusted earnings of 78 cents per share beat the Zacks Consensus Estimate by 5.41%. The earnings figure decreased 2.5% year over year.
Net sales decreased 3% year over year to $3.199 billion and beat the consensus mark by 3.94%. Organically, net sales decreased 5%.
The top line suffered from lower revenues across the mobile networks, mobile devices, IT datacom, broadband and industrial end-markets.
Quarterly Details
Harsh Environment Solutions’ (27.7% of net sales) sales came in at $887.3 million, up 11.8% from the year-ago quarter’s levels.
Communications Solutions’ (40% of net sales) sales were $1.27 billion, which decreased 15.7% year over year.
Interconnect and Sensor Systems Solutions’ (32.3% of net sales) sales were $1.03 billion, up 5% year over year.
Gross margin, on a GAAP basis, expanded 60 basis points (bps) year over year to 32.8%.
Selling, general and administrative expenses, as a percentage of revenues, increased 80 bps on a year-over-year basis to 11.9%.
Adjusted operating margin contracted 20 bps on a year-over-year basis to 20.8%.
Balance Sheet
As of Sep 30, 2023, Amphenol had cash and cash equivalents worth $1.73 billion, up from $1.5 billion as of Jun 30.
Total debt was $4.29 billion as of Sep 30, 2023 compared with $4.32 billion as of Jun 30.
During the quarter, the company purchased 1.7 million shares for $149 million. It also paid dividends of $125 million.
Amphenol also increased quarterly dividend payout by 5% to 22 cents per share.
Acquisitions
The company completed three acquisitions — Connor Manufacturing Services, Q Microwave and XMA Corporation — in the reported quarter.
Amphenol also announced its intent to buy PCTEL. The transaction is expected to close by early 2024.
Guidance
Amphenol expects fourth-quarter 2023 earnings between 75 cents and 77 cents per share, indicating a decline between 1% and 4% year over year. Revenues are anticipated between $3.090 billion and $3.15 billion.
Amphenol expects 2023 earnings between $2.94 and $2.96 per share, indicating a decline between 1% and 2% year over year. Revenues are anticipated between $12.317 billion and $12.377 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
Currently, Amphenol has an average Growth Score of C, a grade with the same score on the momentum front. 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 broadly trending upward for the stock, and the magnitude of these revisions has been net zero. Notably, Amphenol has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.