Amphenol (APH) Tops Q3 EPS by 22c, Revenues Beat

Amphenol (NYSE: APH) reported Q3 EPS of $1.09, $0.22 better than the analyst estimate of $0.87. Revenue for the quarter came in at $2.32 billion versus the consensus estimate of $2.03 billion.

Amphenol President and Chief Executive Officer, R. Adam Norwitt, stated, “While the COVID-19 pandemic continued to impact our business in the third quarter 2020, I am very proud that our team drove results that far exceeded our expectations, all while continuing to prioritize the safety and health of our employees worldwide.”

“We are pleased to have closed the third quarter of 2020 with record sales and Adjusted Diluted EPS of $2.323 billion and $1.09, respectively. Compared to the third quarter of 2019, sales increased by a strong 11%, primarily driven by robust growth in the mobile devices, information technology and data communications and industrial markets. We are especially pleased to have realized sequential sales growth of 17%, a clear reflection of our organization’s agility which enabled us to take advantage of incremental demand, even in these most dynamic times.”

“It is extremely rewarding that even in this challenging environment the Company’s experienced management team continued to react quickly to capitalize on opportunities to reach these new record levels of revenue and earnings. In addition, third quarter operating margins significantly improved from the second quarter, reaching a very strong 20.5%, and operating cash flow was $398 million, a clear confirmation of the quality of the Company’s earnings. The Company continues to deploy its financial strength in a variety of ways to increase shareholder value. To that end, the Company purchased 1.9 million shares of its common stock during the quarter for $202 million and paid dividends of $75 million. In addition, the Board of Directors has approved a 16% increase in our quarterly dividend, from $0.25 to $0.29 per share.”

“As we look ahead, the global economy remains very uncertain, and the continuing COVID-19 pandemic appears to be worsening in some regions of the world. Given the current demand environment and assuming no new material disruptions from the pandemic as well as constant exchange rates, for the fourth quarter 2020, we expect sales to be in the range of $2.160 billion to $2.200 billion and Adjusted Diluted EPS in the range of $0.98 to $1.00. For the full year 2020, we expect sales in the range of $8.333 billion to $8.373 billion, an increase of 1% to 2% over 2019, and Adjusted Diluted EPS to be in the range of $3.59 to $3.61, which is a decrease of 3% to 4% over 2019.”

“Despite the ongoing challenges posed by the COVID-19 pandemic, we are encouraged by the platform of strength that has been created by the Company’s consistent and superior performance during these highly uncertain times. The electronics revolution continues to create exciting long-term growth opportunities for Amphenol across each of our diversified end markets, with customers driving their products and networks to achieve ever higher levels of performance. We believe these opportunities will enable a long-term increase in demand for our expanded range of high-technology interconnect, sensor and antenna products. Our ongoing actions to leverage our competitive advantages and create sustained financial strength, as well as our initiatives to expand our high-technology product offerings, both organically and through our acquisition program, have created an excellent base for future performance. I remain confident in the ability of our outstanding entrepreneurial management team to dynamically adjust to changing market conditions, to capitalize on the wide array of growth opportunities that arise even in times of crisis and to continue to generate strong financial performance. Most importantly, I continue to be truly grateful to our team for their extraordinary efforts to protect the safety and health of our employees around the world.”

For earnings history and earnings-related data on Amphenol (APH) click here.

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