Yahoo Finance Amphenol (APH) Up 14.6% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Amphenol (APH). Shares have added about 14.6% 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 drivers.
Amphenol's Q1 Earnings Beat Estimates, Revenues Up Y/Y
Amphenol’s first-quarter 2024 adjusted earnings of 80 cents per share beat the Zacks Consensus Estimate by 8.11%. The earnings figure increased 16% year over year.
Net sales increased 9.5% year over year to $3.26 billion and beat the consensus mark by 5.81%. Organically, net sales increased 6%.
The top line benefited from higher revenues across the commercial air, defense, automotive and IT datacom end-markets.
Quarterly Details
Harsh Environment Solutions’ (28.1% of net sales) sales came in at $916 million, up 7.2% from the year-ago quarter’s levels.
Communications Solutions’ (38.9% of net sales) sales were $1.27 billion, which increased 12.3% year over year.
Interconnect and Sensor Systems Solutions’ (33% of net sales) sales were $1.07 billion, up 8.2% year over year.
Gross margin, on a GAAP basis, expanded 170 basis points (bps) year over year to 33.4%.
Selling, general and administrative expenses, as a percentage of revenues, increased 80 bps on a year-over-year basis to 12.4%.
Adjusted operating margin expanded 110 bps on a year-over-year basis to 21%.
Balance Sheet
As of Mar 31, 2024, Amphenol had cash and cash equivalents worth $1.96 billion, up from $1.73 billion as of Dec 31, 2023.
Total debt was $4.31 billion as of Mar 31, 2024 compared with $4.29 billion as of Dec 31, 2023.
During the quarter, the company purchased 1.4 million shares for $154 million. It also paid dividends of $132 million.
Amphenol announced a new three-year share repurchase program worth $2 billion.
Guidance
Amphenol expects second-quarter 2024 earnings between 79 cents and 81 cents per share, indicating growth between 10% and 13% year over year. Revenues are anticipated between $3.24 billion and $3.30 billion.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
VGM Scores
Currently, Amphenol has a strong Growth Score of A, 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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Amphenol Corporation (APH) : Free Stock Analysis Report
