WALLINGFORD, Conn. - Amphenol Corporation (NYSE:APH), a global leader in interconnect solutions, announced a robust performance for the second quarter of 2024, with record sales and a solid earnings beat.
The company reported second-quarter earnings per share (EPS) of $0.44, surpassing analyst expectations of $0.41. Revenue for the quarter reached $3.61 billion, also exceeding the consensus estimate of $3.38 billion, marking an 18% increase compared to the same quarter last year.
Despite the strong results, Amphenol's stock experienced a 4% decline.
Amphenol anticipates EPS to be in the range of $0.43 to $0.45, straddling the analyst consensus of $0.44.
Amphenol's President and CEO, R. Adam Norwitt, expressed satisfaction with the company's performance, highlighting growth across multiple markets, including IT datacom, defense, commercial air, mobile devices, mobile networks, and automotive. Norwitt credited these increases to both organic growth and strategic acquisitions, with particularly strong profitability as evidenced by a record Adjusted Operating Margin of 21.3%.
The company's strategy of diversification and acquisition was further demonstrated through the recent deals to acquire Lutze in the U.S. and Europe, as well as the acquisition of Carlisle Interconnect Technologies (CIT) and a definitive agreement to acquire CommScope's mobile networks-related businesses. These acquisitions are expected to bolster Amphenol's Harsh Environment Solutions segment.
In addition to its acquisition strategy, Amphenol returned over $320 million to shareholders through stock repurchases and dividends, and announced a 50% increase in its quarterly dividend to $0.165 per share.
Looking forward, Norwitt remains optimistic about the company's trajectory, citing the acceleration of the electronics revolution and Amphenol's expanding technology portfolio. He also praised the company's entrepreneurial management team for its ability to adjust to market conditions and generate sustainable long-term value.
Amphenol's financial strength was evident in its cash flow, with Operating and Free Cash Flow reported at $664 million and $528 million, respectively.
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