Q124 APH earnings

earnings summary

Earnings Results: • Sales of $3.256 billion, up 9% in U.S. dollars and 10% in local currencies compared to Q1 2023 • Adjusted diluted EPS of $0.80, up 16% compared to Q1 2023 • Organic sales growth of 6% driven by IT datacom, commercial air, automotive, defense, and mobile devices markets • Orders of $3.348 billion, up 16% compared to Q1 2023, resulting in a book-to-bill ratio of 1.03:1

Future Guidance: • Q2 2024 sales expected in the range of $3.24 billion to $3.30 billion • Q2 2024 adjusted diluted EPS expected in the range of $0.79 to $0.81 • CIT acquisition expected to add roughly $0.02 to earnings in the second half of 2024 • Slightly elevated levels of CapEx expected in the coming quarters to support growth in certain markets

Themes, Trends, Market Conditions, and Sentiment: Amphenol Corporation reported strong results for the first quarter of 2024, with sales growing 9% in U.S. dollars and 10% in local currencies, reaching $3.256 billion. The company’s adjusted diluted EPS increased by 16% to $0.80 compared to the same quarter in the previous year. Organic sales growth of 6% was driven by strong performance in the IT datacom, commercial air, automotive, defense, and mobile devices markets, partially offset by declines in the mobile networks, broadband, and industrial markets.

The company’s book-to-bill ratio of 1.03:1 indicates a positive outlook for future demand. Amphenol’s CEO, Adam Norwitt, expressed confidence in the company’s ability to capitalize on opportunities in various markets, particularly in the rapidly growing artificial intelligence (AI) data center market. The company’s high-speed, low-latency interconnect products are critical components in next-generation AI systems, positioning Amphenol for long-term growth in this area.

Amphenol also announced the pending acquisition of Carlisle Interconnect Technologies (CIT) for $2 billion, which is expected to close by the end of Q2 2024. CIT’s complementary product offerings and strong presence in the commercial air, defense, and industrial markets are expected to enhance Amphenol’s market position and growth prospects.

Looking ahead, Amphenol expects sales in the range of $3.24 billion to $3.30 billion and adjusted diluted EPS between $0.79 and $0.81 for the second quarter of 2024. The company also anticipates slightly elevated levels of capital expenditure in the coming quarters to support growth in key markets.

Notable quotes: • Adam Norwitt: “I’m extremely proud of our global team of Amphenolians. The company’s results this quarter once again reflect the discipline and agility of our entrepreneurial organization who continued to perform very well in the most dynamic of environment.” • Adam Norwitt on the AI market: “This revolution in AI that we’re all living through right now has created a unique opportunity for Amphenol given our leading high-speed and power interconnect products. With machine learning driving a more intensive usage of these highest technology interconnect products, we’re very well positioned for the future.”