Amphenol Reports Q2 2023 Results

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Amphenol Corporation reported second quarter 2023 results.

“We are pleased to have closed the second 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 decreased from prior year by 3%, driven by declines in the IT datacom, mobile networks and mobile devices markets, which was partially offset by growth in the commercial air, military and automotive markets as well as contributions from the Company’s acquisition program. Despite the moderation in our sales from prior year, our team executed strongly in the quarter, with Adjusted Operating Margin reaching 20.4%.”

During the second quarter of 2023, Amphenol continued to deploy its financial strength in a variety of ways to increase shareholder value. This included the repurchase of 2.0 million shares of its common stock for $154 million as well as the payment of dividends of $125 million, resulting in total capital returned to shareholders of $280 million.

“We remain focused on expanding our growth opportunities through a deep commitment to developing enabling technologies for customers across our served markets, an ongoing strategy of market and geographic diversification as well as an active and successful acquisition program. To that end, we are excited to have closed on the previously announced acquisition of the North American cable and global base station antenna businesses of RFS. Given the current challenging conditions in the mobile networks market, we now expect RFS to contribute approximately $30 million to second half 2023 sales.”

“We are also excited to have closed on the acquisition of EBY Electro Inc. (EBY) in July. Based in Long Island, New York and with annual sales of approximately $15 million, EBY designs and distributes terminal block interconnect products to the industrial market, primarily in North America. The acquisition further expands our offering of high-technology interconnect products in the diversified industrial market, while adding another talented management team to the Amphenol family.”

Third Quarter 2023 Outlook

Assuming market conditions do not meaningfully worsen as well as constant exchange rates, for the third quarter of 2023, Amphenol expects sales to be in the range of $3.040 billion to $3.100 billion. This represents a 6% to 8% decline over the prior year quarter. Adjusted Diluted EPS is expected to be in the range of $0.72 to $0.74, representing an 8% to 10% reduction from the third quarter of 2022.

“Despite the ongoing challenges and uncertainties around the world, we are very pleased with the Company’s second quarter 2023 results,” Mr. Norwitt continued. “The revolution in electronics continues to accelerate, creating exciting 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 many challenges around the world while continuing to strongly support our customers and drive outstanding operating performance.”