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Can Q4 Earnings Beat & Encouraging View Push APH Stock Higher?

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Amphenol’s (APH - Free Report) fourth-quarter 2024 adjusted earnings of 55 cents per share beat the Zacks Consensus Estimate by 10%. The earnings figure increased 34.1% year over year.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Net sales increased 29.8% year over year to $4.32 billion, beating the consensus mark by 7.01%. Organically, net sales increased 20%.

Amphenol offered encouraging guidance for the first quarter of 2025, which is expected to push shares higher. 
 

 

APH shares have returned 4.04% in pre-market trading following the results.

APH’s Top-Line Grows Y/Y

APH’s top line benefited from higher revenues across the IT datacom, mobile networks, broadband, defense, commercial air, and mobile devices automotive end-markets. It also benefited from APH’s acquisition program.

Harsh Environment Solutions’ (29.2% of net sales) sales were $1.26 billion, up 40.2% year over year.

Communications Solutions’ (44.7% of net sales) sales were $1.93 billion, which increased 43.3% year over year.

Interconnect and Sensor Systems Solutions’ (26.1% of net sales) sales were $1.13 billion, up 4.3% year over year.

Gross margin, on a GAAP basis, expanded 120 basis points (bps) year over year to 34.3%. 

Selling, general and administrative expenses, as a percentage of revenues, increased 10 bps on a year-over-year basis to 11.9%.

Adjusted operating margin expanded 110 bps on a year-over-year basis to 22.4%.

APH’s Balance Sheet Reflects High Debt Level

As of Dec. 31, 2024, Amphenol had cash and cash equivalents worth $3.34 billion, up from $1.58 billion as of Sept. 30, 2024.

Total debt was $6.89 billion as of Dec. 31, 2024, compared with $5.48 billion as of Sept. 30, 2024.

During the quarter, the company purchased 2.4 million shares for $169 million. It also paid dividends of $199 million.

Amphenol’s Q1 Guidance Positive

Amphenol expects first-quarter 2025 earnings between 49 cents and 51 cents per share, indicating growth between 23% and 28% year over year. Revenues are anticipated between $4 billion and $4.10 billion, suggesting growth in the 23-26% range. 

The Zacks Consensus Estimate for first-quarter 2025 revenues is pegged at $3.94 billion, suggesting a 20.89% increase year over year. The consensus estimate for earnings is pegged at 47 cents per share, unchanged over the past 30 days and indicates 17.5% year-over-year growth.

Zacks Rank & Other Top-Ranked Technology Stocks

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

Bill Holdings (BILL - Free Report) , Fortinet (FTNT - Free Report) and Impinj (PI - Free Report) are some other top-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. Each of the three stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Bill Holdings shares have appreciated 20.7% in the trailing 12-month period. BILL is set to report its second-quarter fiscal 2025 results on Feb. 6.

Fortinet shares have returned 50.9% in the trailing 12-month period. FTNT is set to report its fourth-quarter fiscal 2024 results on Feb. 6.

Impinj shares are up 33.8% in the trailing 12-month period. PI is set to report its fourth-quarter 2024 results on Feb. 5.

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