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Amphenol's (APH) Q2 Earnings Beat Estimates, Revenues Up Y/Y
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Amphenol’s (APH - Free Report) second-quarter 2024 adjusted earnings of 43 cents per share beat the Zacks Consensus Estimate by 4.88%. The earnings figure increased 19.4% year over year.
Net sales increased 18.2% year over year to $3.61 billion and beat the consensus mark by 7.02%. Organically, net sales increased 11%.
The top line benefited from higher revenues across the IT datacom, defense, commercial air, mobile devices, mobile networks and automotive end-markets.
Quarterly Details
Harsh Environment Solutions’ (29% of net sales) sales came in at $1.05 billion, up 17.7% from the year-ago quarter’s levels.
Communications Solutions’ (40% of net sales) sales were $1.44 billion, which increased 24.4% year over year.
Interconnect and Sensor Systems Solutions’ (31% of net sales) sales were $1.12 billion, up 11.5% year over year.
Gross margin, on a GAAP basis, expanded 110 basis points (bps) year over year to 33.6%.
Selling, general and administrative expenses, as a percentage of revenues, increased 30 bps on a year-over-year basis to 12.3%.
Adjusted operating margin expanded 90 bps on a year-over-year basis to 21.3%.
Balance Sheet
As of Jun 30, 2024, Amphenol had cash and cash equivalents worth $1.3 billion, up from $1.96 billion as of Mar 31, 2024.
Total debt was $3.86 billion as of Jun 30, 2024, compared with $4.31 billion as of Mar 31, 2024.
During the quarter, the company purchased 3.1 million shares for $190 million. It also paid dividends of $132 million.
Amphenol’s board approved a 50% increase in quarterly dividend.
Guidance
Amphenol expects third-quarter 2024 earnings between 43 cents and 45 cents per share, indicating growth between 10% and 15% year over year. Revenues are anticipated between $3.7 billion and $3.80 billion.
The Zacks Consensus Estimate for third-quarter 2024 revenues is pegged at $3.66 billion, suggesting a 14.37% increase year over year. The consensus estimate for earnings is pegged at 44 cents per share, unchanged over the past 30 days.
Zacks Rank & Stocks to Consider
Currently, Amphenol carries a Zacks Rank #3 (Hold).
APH shares have gained 33.7% compared with the Zacks Computer and Technology sector’s rise of 23.9% year to date.
Arista Networks (ANET - Free Report) , Apple (AAPL - Free Report) and Cognizant (CTSH - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector.
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Amphenol's (APH) Q2 Earnings Beat Estimates, Revenues Up Y/Y
Amphenol’s (APH - Free Report) second-quarter 2024 adjusted earnings of 43 cents per share beat the Zacks Consensus Estimate by 4.88%. The earnings figure increased 19.4% year over year.
Net sales increased 18.2% year over year to $3.61 billion and beat the consensus mark by 7.02%. Organically, net sales increased 11%.
The top line benefited from higher revenues across the IT datacom, defense, commercial air, mobile devices, mobile networks and automotive end-markets.
Quarterly Details
Harsh Environment Solutions’ (29% of net sales) sales came in at $1.05 billion, up 17.7% from the year-ago quarter’s levels.
Communications Solutions’ (40% of net sales) sales were $1.44 billion, which increased 24.4% year over year.
Interconnect and Sensor Systems Solutions’ (31% of net sales) sales were $1.12 billion, up 11.5% year over year.
Amphenol Corporation Price
Amphenol Corporation price | Amphenol Corporation Quote
Gross margin, on a GAAP basis, expanded 110 basis points (bps) year over year to 33.6%.
Selling, general and administrative expenses, as a percentage of revenues, increased 30 bps on a year-over-year basis to 12.3%.
Adjusted operating margin expanded 90 bps on a year-over-year basis to 21.3%.
Balance Sheet
As of Jun 30, 2024, Amphenol had cash and cash equivalents worth $1.3 billion, up from $1.96 billion as of Mar 31, 2024.
Total debt was $3.86 billion as of Jun 30, 2024, compared with $4.31 billion as of Mar 31, 2024.
During the quarter, the company purchased 3.1 million shares for $190 million. It also paid dividends of $132 million.
Amphenol’s board approved a 50% increase in quarterly dividend.
Guidance
Amphenol expects third-quarter 2024 earnings between 43 cents and 45 cents per share, indicating growth between 10% and 15% year over year. Revenues are anticipated between $3.7 billion and $3.80 billion.
The Zacks Consensus Estimate for third-quarter 2024 revenues is pegged at $3.66 billion, suggesting a 14.37% increase year over year. The consensus estimate for earnings is pegged at 44 cents per share, unchanged over the past 30 days.
Zacks Rank & Stocks to Consider
Currently, Amphenol carries a Zacks Rank #3 (Hold).
APH shares have gained 33.7% compared with the Zacks Computer and Technology sector’s rise of 23.9% year to date.
Arista Networks (ANET - Free Report) , Apple (AAPL - Free Report) and Cognizant (CTSH - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector.
Arista Networks sports a Zacks Rank #1 (Strong Buy) at present, while Apple and Cognizant Technology Solutions carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks’ shares have gained 47.2% year to date. ANET is set to report its second-quarter 2024 results on Jul 30.
Apple shares have gained 16.9% year to date. AAPL is set to report its third-quarter fiscal 2024 results on Aug 1.
Cognizant shares have declined 2.2% year to date. CTSH is set to report its second-quarter 2024 results on Jul 31.