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Why Is Amphenol (APH) Up 8.1% 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 8.1% 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 its most recent earnings report in order to get a better handle on the important catalysts.
Amphenol’s Q2 Earnings Beat Estimates, Revenues Up Y/Y
Amphenol's 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
Currently, Amphenol has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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 looks promising. It comes with little surprise Amphenol has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Why Is Amphenol (APH) Up 8.1% Since Last Earnings Report?
A month has gone by since the last earnings report for Amphenol (APH - Free Report) . Shares have added about 8.1% 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 its most recent earnings report in order to get a better handle on the important catalysts.
Amphenol’s Q2 Earnings Beat Estimates, Revenues Up Y/Y
Amphenol's 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
VGM Scores
Currently, Amphenol has an average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. 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 looks promising. It comes with little surprise Amphenol has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.