•
Mar 31, 2023

Amphenol Q1 2023 Earnings Report

Amphenol's first quarter 2023 results were reported, demonstrating sales and adjusted diluted EPS exceeding guidance, driven by growth in various markets and strategic acquisitions, despite challenges in communications-related sectors.

Key Takeaways

Amphenol reported a 1% increase in sales to $2.974 billion and a 4% increase in GAAP diluted EPS to $0.71 for Q1 2023. The company's performance was driven by strong growth in several markets, including commercial air, broadband communications, military, industrial, and automotive, along with contributions from acquisitions, offsetting declines in IT datacom, mobile networks, and mobile devices markets.

Sales reached $2.974 billion, a 1% increase year-over-year and organically.

GAAP Diluted EPS increased by 4% to $0.71 compared to the previous year.

Adjusted Diluted EPS was up 3% year-over-year, reaching $0.69.

Operating and Free Cash Flow stood at $532 million and $436 million, respectively.

Total Revenue
$2.97B
Previous year: $2.95B
+0.7%
EPS
$0.35
Previous year: $0.34
+2.9%
Adjusted Operating Margin
20.1%
Gross Profit
$943M
Previous year: $927M
+1.8%
Cash and Equivalents
$1.39B
Previous year: $1.25B
+11.5%
Free Cash Flow
$436M
Previous year: $275M
+58.7%
Total Assets
$15.4B
Previous year: $14.9B
+3.4%

Amphenol

Amphenol

Forward Guidance

For the second quarter of 2023, Amphenol expects sales to be in the range of $2.890 billion to $2.950 billion, representing a 6% to 8% decline over the prior year quarter. Adjusted Diluted EPS is expected to be in the range of $0.66 to $0.68, representing a 9% to 12% decline over the second quarter of 2022.

Positive Outlook

  • Assuming market conditions do not meaningfully worsen.
  • Assuming constant exchange rates.
  • Sales expected to be in the range of $2.890 billion to $2.950 billion.
  • Adjusted Diluted EPS is expected to be in the range of $0.66 to $0.68.
  • The revolution in electronics continues to accelerate, creating exciting and dynamic long-term growth opportunities.

Challenges Ahead

  • The current economic environment remains uncertain.
  • There continues to be a significant moderation in the communications-related markets.
  • Customer demand expected to again be reduced from prior year.
  • Sales represent a 6% to 8% decline over the prior year quarter.
  • Adjusted Diluted EPS represents a 9% to 12% decline over the second quarter of 2022.