Amphenol Reports 9% Sales Growth in Q1 2024
2024-04-26
Amphenol Corporation, a prominent provider of interconnect solutions, conducted its earnings call for the first quarter of 2024, during which key executives Craig Lampo, the CFO, and Adam Norwitt, the CEO, deliberated on the company's financial results and strategic direction. The company disclosed that it achieved sales of $3.256 billion in the first quarter, reflecting a 9% increase in U.S. dollars and a 10% rise in local currencies compared to the corresponding period in the previous year. Moreover, the company experienced a 6% organic growth in sales year-over-year.
During the first quarter of 2024, Amphenol demonstrated robust operating income and margin, with GAAP and adjusted operating income hitting $685 million and an operating margin of 21%. The company noted enhancements in operating margins compared to the prior year, with GAAP operating margin rising by 110 basis points and adjusted operating margin increasing by 90 basis points. However, the operating margin witnessed a sequential decrease of 20 basis points.
In terms of segment performance, the Interconnect and Sensor Systems segment recorded sales of $1.075 billion in the first quarter of 2024, accompanied by a segment operating margin of 22.6%. Amphenol observed growth in various markets such as IT datacom, commercial air, automotive, and defense, while encountering declines in sales in markets like mobile networks, broadband, and industrial sectors.
The adjusted diluted EPS for the first quarter of 2024 stood at $0.80, marking a 16% surge from the previous year. The GAAP diluted EPS was reported at $0.87, reflecting a 23% increase compared to the same period in the prior year. Additionally, the company generated a robust operating cash flow of $599 million in the first quarter.
Looking forward, Amphenol anticipates sales in the range of $3.24 billion to $3.30 billion and adjusted diluted EPS in the range of $0.79 to $0.81 for the second quarter of 2024. The company remains committed to capital deployment, striking a balance between M&A activities and returning value to shareholders through dividends and share repurchases. Amphenol's strategic approach, coupled with its strong financial performance and market positioning, paints a positive outlook for the company's future growth and profitability.