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Amphenol Earnings Surpass Estimates in Q1, Sales Increase Y/Y
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Amphenol’s (APH - Free Report) first-quarter 2025 adjusted earnings of 63 cents per share beat the Zacks Consensus Estimate by 21.15%. The earnings figure increased 57.5% year over year.
Net sales increased 47.7% year over year to $4.81 billion, beating the consensus mark by 13.93%, Organically, net sales increased 33% year over year.
This exceptional top line performance was driven by strong organic growth in the IT datacom sector, along with solid gains in the mobile devices, defense, and communications network markets. Strategic contributions from the company’s ongoing acquisition program further amplified the top-line growth.
APH shares jumped 11.48% in the pre-market trading to $73.30 after the company delivered impressive first-quarter results.
Amphenol Corporation Price, Consensus and EPS Surprise
Harsh Environment Solutions’ (26.4% of net sales) sales were $1.27 billion, up 38.4% year over year.
Communications Solutions’ (50.2% of net sales) sales were $2.41 billion, which increased 90.7% year over year.
Interconnect and Sensor Systems Solutions’ (23.5% of net sales) sales were $1.13 billion, up 5.1% year over year.
Gross margin, on a GAAP basis, expanded 70 basis points (bps) year over year to 34.2%.
Selling, general and administrative expenses, as a percentage of sales, decreased 50 bps on a year-over-year basis to 12%.
Adjusted operating margin expanded 240 bps on a year-over-year basis to 23.5%.
APH’s Balance Sheet & Cash Flow
As of March 31, 2025, Amphenol had cash and cash equivalents worth $1.67 billion, down from $3.34 billion as of Dec. 31, 2024.
Total debt was $7.17 billion as of March 31, 2025, compared with $6.89 billion as of Dec. 31, 2024.
In the first quarter, the company purchased 2.7 million shares for $180.9 million. It also paid dividends of $200 million.
APH generated $764.9 million in cash from operations in the first quarter, down from $847.1 million in the previous quarter.
The company generated a non-GAAP free cash flow of $580.4 million in the first quarter, down from $648 million in the prior quarter.
Amphenol’s Q2 Guidance Positive
Amphenol expects second-quarter 2025 earnings between 64 cents and 66 cents per share, indicating year-over-year growth between 45% and 50%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Sales are anticipated between $4.90 billion and $5.00 billion, suggesting year-over-year growth of 36-39%.
The Zacks Consensus Estimate for second-quarter 2025 sales is pegged at $4.54 billion, suggesting a 25.87% year-over-year increase. The consensus estimate for earnings is pegged at 55 cents per share, unchanged over the past 30 days and indicating 27.91% year-over-year growth.
Zacks Rank & Technology Stocks to Consider
Currently, Amphenol carries a Zacks Rank #4 (Sell).
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Amphenol Earnings Surpass Estimates in Q1, Sales Increase Y/Y
Amphenol’s (APH - Free Report) first-quarter 2025 adjusted earnings of 63 cents per share beat the Zacks Consensus Estimate by 21.15%. The earnings figure increased 57.5% year over year.
Net sales increased 47.7% year over year to $4.81 billion, beating the consensus mark by 13.93%, Organically, net sales increased 33% year over year.
This exceptional top line performance was driven by strong organic growth in the IT datacom sector, along with solid gains in the mobile devices, defense, and communications network markets. Strategic contributions from the company’s ongoing acquisition program further amplified the top-line growth.
APH shares jumped 11.48% in the pre-market trading to $73.30 after the company delivered impressive first-quarter results.
Amphenol Corporation Price, Consensus and EPS Surprise
Amphenol Corporation price-consensus-eps-surprise-chart | Amphenol Corporation Quote
APH’s Q1 Top-Line Details
Harsh Environment Solutions’ (26.4% of net sales) sales were $1.27 billion, up 38.4% year over year.
Communications Solutions’ (50.2% of net sales) sales were $2.41 billion, which increased 90.7% year over year.
Interconnect and Sensor Systems Solutions’ (23.5% of net sales) sales were $1.13 billion, up 5.1% year over year.
Gross margin, on a GAAP basis, expanded 70 basis points (bps) year over year to 34.2%.
Selling, general and administrative expenses, as a percentage of sales, decreased 50 bps on a year-over-year basis to 12%.
Adjusted operating margin expanded 240 bps on a year-over-year basis to 23.5%.
APH’s Balance Sheet & Cash Flow
As of March 31, 2025, Amphenol had cash and cash equivalents worth $1.67 billion, down from $3.34 billion as of Dec. 31, 2024.
Total debt was $7.17 billion as of March 31, 2025, compared with $6.89 billion as of Dec. 31, 2024.
In the first quarter, the company purchased 2.7 million shares for $180.9 million. It also paid dividends of $200 million.
APH generated $764.9 million in cash from operations in the first quarter, down from $847.1 million in the previous quarter.
The company generated a non-GAAP free cash flow of $580.4 million in the first quarter, down from $648 million in the prior quarter.
Amphenol’s Q2 Guidance Positive
Amphenol expects second-quarter 2025 earnings between 64 cents and 66 cents per share, indicating year-over-year growth between 45% and 50%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Sales are anticipated between $4.90 billion and $5.00 billion, suggesting year-over-year growth of 36-39%.
The Zacks Consensus Estimate for second-quarter 2025 sales is pegged at $4.54 billion, suggesting a 25.87% year-over-year increase. The consensus estimate for earnings is pegged at 55 cents per share, unchanged over the past 30 days and indicating 27.91% year-over-year growth.
Zacks Rank & Technology Stocks to Consider
Currently, Amphenol carries a Zacks Rank #4 (Sell).
Paycom Software (PAYC - Free Report) , Pitney Bowes (PBI - Free Report) and Nokia (NOK - Free Report) are some better-ranked stocks in the broader Zacks Computer and Technology sector. Paycom Software currently sports a Zacks Rank #1 (Strong Buy), and Pitney Bowes and Nokia carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Paycom Software shares have returned 3.2% year to date. The long-term expected earnings growth rate for PAYC is pegged at 11.56%.
Pitney Bowes’ shares have gained 11.9% year to date. The long-term expected earnings growth rate for PBI is pegged at 15%.
Nokia shares have appreciated 19.2% year to date. The long-term expected earnings growth rate for NOK is pegged at 2.25%.