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Amphenol reports strong first quarter with increased sales and EPS

EditorNatashya Angelica
Published 04/24/2024, 02:02 PM

WALLINGFORD, Conn. - Amphenol Corporation (NYSE: NYSE:APH), a global leader in the design and manufacturing of electrical, electronic and fiber optic connectors, has announced its financial results for the first quarter of 2024. The company reported a 9% increase in sales to $3.26 billion and a 23% increase in GAAP Diluted Earnings Per Share (EPS) to $0.87 compared to the same period last year.

Organic sales, which exclude the impact of acquisitions and currency fluctuations, grew by 6%. The company's adjusted operating margin remained strong at 21.0%, matching its GAAP operating margin and marking a record for the first quarter. Operating and Free Cash Flow for the quarter were reported at $599 million and $506 million, respectively.

Amphenol's President and Chief Executive Officer, R. Adam Norwitt, expressed satisfaction with the quarter's results, attributing the growth to performance in IT datacom, commercial air, automotive, and defense markets, alongside contributions from the company's acquisition program. However, he noted moderations in the mobile networks, broadband, and industrial markets.

The company also announced a new three-year, $2 billion stock repurchase program, having completed the previous $2 billion plan.

Looking forward, Amphenol anticipates the second quarter of 2024 to continue the positive trend, with sales expected to be between $3.24 billion and $3.30 billion, a 6% to 8% increase over the prior year's quarter. Adjusted Diluted EPS is projected to be in the range of $0.79 to $0.81, representing a 10% to 13% increase from the second quarter of 2023.

Norwitt emphasized the company's commitment to leveraging its competitive advantage and creating sustained financial strength, expressing confidence in the management team's ability to adjust to market conditions and capitalize on growth opportunities.

The company will host a conference call to discuss its first quarter results at 1:00 PM (EDT) today. The information provided in this article is based on a press release statement from Amphenol Corporation.

InvestingPro Insights

Amphenol Corporation (NYSE: APH) has demonstrated a robust financial performance in the first quarter of 2024, which is reflected in several key metrics from InvestingPro. With a market capitalization of $68.62 billion, the company's size and stability are evident.

Still, it is worth noting that the company is trading at a relatively high Price/Earnings (P/E) ratio of 35.35, indicating that investors may expect continued growth and are willing to pay a premium for its shares. This is further supported by the fact that the company's stock is trading near its 52-week high, at 95.68% of the peak value.

The company's commitment to shareholder returns is highlighted by a dividend yield of 0.77%, and it's noteworthy that Amphenol has raised its dividend for 12 consecutive years, showcasing a reliable track record of returning value to investors. The InvestingPro Tips also reveal that analysts have revised their earnings upwards for the upcoming period, suggesting that the market anticipates further positive performance from the company.

For investors looking for more in-depth analysis and additional InvestingPro Tips, Amphenol Corporation currently has 17 tips listed on InvestingPro, which can be accessed at: https://www.investing.com/pro/APH. These insights can provide a more comprehensive understanding of the company's financial health and future prospects. To access these insights, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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