Amphenol’s (APH Quick QuoteAPH - Free Report) fourth-quarter 2023 adjusted earnings of 82 cents per share beat the Zacks Consensus Estimate by 6.49%. The earnings figure increased 5.1% year over year.

Net sales increased 2.7% year over year to $3.33 billion and beat the consensus mark by 5.89%. Organically, net sales decreased 1%.

The top line benefited from higher revenues across the commercial air, defense, automotive and IT datacom end-markets.

Quarterly Details

Harsh Environment Solutions’ (27.1% of net sales) sales came in at $900.3 million, up 13.2% from the year-ago quarter’s levels.

Communications Solutions’ (40.4% of net sales) sales were $1.35 billion, which decreased 6.3% year over year.

Amphenol Corporation Price, Consensus and EPS Surprise

Amphenol Corporation price-consensus-eps-surprise-chart | Amphenol Corporation Quote

Interconnect and Sensor Systems Solutions’ (32.5% of net sales) sales were $1.08 billion, up 7.3% year over year.

Gross margin, on a GAAP basis, expanded 100 basis points (bps) year over year to 33.1%.

Selling, general and administrative expenses, as a percentage of revenues, increased 70 bps on a year-over-year basis to 11.8%.

Adjusted operating margin expanded 40 bps on a year-over-year basis to 21.2%.

Balance Sheet

As of Sep 30, 2023, Amphenol had cash and cash equivalents worth $1.73 billion, up from $1.73 billion as of Sep 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 1.3 million shares for $115 million. It also paid dividends of $126 million.

The company completed four acquisitions — TPC Wire & Cable, Airmar Technology, LID Technologies and PCTEL — in the reported quarter.

Guidance

Amphenol expects first-quarter 2024 earnings between 71 cents and 73 cents per share, indicating growth between 3% and 6% year over year. Revenues are anticipated between $3.04 billion and $3.10 billion.

The Zacks Consensus Estimate for first-quarter 2024 revenues is pegged at $3.04 billion, suggesting a 2.06% increase year over year. The consensus estimate for earnings is pegged at 73 cents per share, unchanged over the past 30 days.

Zacks Rank & Other Stocks to Consider

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

Shares of the company have returned 23.3% in the past 12 months, underperforming the Zacks Computer & Technology sector’s growth of 46.7%.

Apple (AAPL Quick QuoteAAPL - Free Report) , Pinterest (PINS Quick QuotePINS - Free Report) and AvidXchange (AVDX Quick QuoteAVDX - Free Report) are some other top-ranked stocks that investors can consider in the broader sector, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Apple shares have gained 36.9% in the past year. AAPL is set to report its first-quarter fiscal 2024 results on Feb 1.

Pinterest shares have gained 43.1% in the past year. PINS is set to report its fourth-quarter 2023 results on Feb 8.

AvidXchange shares have gained 0.9% in the trailing 12-months. AVDX is set to report its fourth-quarter 2023 results on Feb 28.