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Amphenol Corporation reported first quarter 2023 results.
First Quarter 2023 Highlights:
- Sales of $2.974 billion, up 1% in U.S. dollars and organically compared to the first quarter of 2022
- GAAP Diluted EPSof $0.71, up 4% compared to prior year
- Adjusted Diluted EPSof $0.69, up 3% compared to prior year
- GAAP and Adjusted Operating Marginof 19.9% and 20.1%
- Operating and Free Cash Flow of $532 million and $436 million
“We are pleased to have closed the first quarter of 2023 with sales and Adjusted Diluted EPS both exceeding the high end of our guidance,” said Amphenol President and Chief Executive Officer, R. Adam Norwitt. “Sales increased from prior year by 1%, driven by strong growth in the commercial air, broadband communications, military, industrial and automotive markets, as well as contributions from the Company’s acquisition program. This was largely offset by expected declines in the IT datacom, mobile networks and mobile devices markets, along with the negative impact of currency. Despite the continued range of challenges around the world, as well as moderating conditions in several of our communications-related markets, our team executed strongly in the quarter, with Adjusted Operating Margin reaching 20.1%.”
During the first quarter of 2023, Amphenol continued to deploy its financial strength in a variety of ways to increase shareholder value. During the first quarter, the Company purchased 2.1 million shares of its common stock for $167 million and paid dividends of $125 million, resulting in total capital returned to shareholders of more than $290 million.
Second Quarter 2023 Outlook
The current economic environment remains uncertain. In addition, as the Company discussed last quarter, there continues to be a significant moderation in the communications-related markets, with customer demand expected to again be reduced from prior year in the second quarter of 2022. Assuming market conditions do not meaningfully worsen as well as constant exchange rates, for the second quarter of 2023, Amphenol expects sales to be in the range of $2.890 billion to $2.950 billion. This represents 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.
“Despite the ongoing challenges and uncertainties around the world, we are very pleased with the Company’s first quarter 2023 results,” Mr. Norwitt continued. “The revolution in electronics continues to accelerate, creating exciting and dynamic long-term growth opportunities for Amphenol across each of our diversified end markets. Our ongoing drive to leverage our competitive advantages and create sustained financial strength, as well as our initiatives to expand our product offerings, both organically and through our acquisition program, have created an excellent base for the Company’s future performance. I am confident in the ability of our outstanding entrepreneurial management team to continue to dynamically adjust to changing market conditions, to capitalize on the wide array of growth opportunities that arise in all market cycles and to continue to generate sustainable long-term value for our shareholders and other stakeholders. Most importantly, I remain truly grateful to our team for their extraordinary efforts in navigating the myriad of challenges around the world while continuing to strongly support our customers and drive outstanding operating performance.”
