Amphenol Beats Q3 Sales, EPS Estimates Despite Market Moderations, CEO Highlights Mixed Market Performance

Amphenol Corp APH reported a third-quarter FY23 sales decline of 1% year-on-year to $3.199 billion, beating the consensus of $3.098 billion. 

Adjusted EPS of $0.78 topped the consensus of $0.74.

The adjusted operating margin in the quarter was 20.8% versus 21.0% a year ago.

Amphenol exited the quarter with $1.73 billion in cash and equivalents. 

"Sales decreased from prior year by 3%, driven by moderations in the mobile networks, mobile devices, IT datacom, broadband and industrial markets, which were partially offset by growth in the commercial air, military, and automotive markets as well as contributions from the Company's acquisition program," CEO R. Adam Norwitt said.

Outlook: Amphenol had fourth-quarter sales of $3.09 billion-$3.15 billion, compared to the consensus of $3.17 billion. This represented a 3%-5% decline over the prior-year quarter.

APH saw adjusted EPS of $0.75-$0.77, compared to the consensus of $0.76. This represented a 1%-4% reduction from the third quarter of 2022.

For FY23, Amphenol expected sales of $12.317 billion-$12.377 billion, representing a 2% Y/Y decline versus consensus $12.30 billion, and adjusted EPS of $2.94-$2.96, representing a 1%-2% Y/Y decline versus consensus $2.92. 

Dividend: On Oct. 24, 2023, the Board approved a 5% increase in the quarterly dividend from $0.21 to $0.22 per share. 

Price Action: APH shares traded are up 0.67% at $79.79 at last check Wednesday.

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