APH Q2 2020 Earnings

Call Details

• Call Title: Amphenol Corporation Q2 2020 Earnings Call
• Date: July 22, 2020 at 5:00 PM UTC
• Management Team:
  • Craig Lampo (Chief Financial Officer (CFO))
  • Adam Norwood (Chief Executive Officer (CEO))

Call Summary

Financial Performance

• Amphenol reported sales of $1.987B in Q2 2020, which were down 1% in U.S. dollars and flat in local currencies versus Q2 2019.
• From an organic standpoint excluding acquisitions and currency, Q2 sales declined 3% year-over-year.
• Operating income was $357M and operating margin was 18%, representing a 230 basis point decline versus Q2 2019 and a 100 basis point sequential improvement versus Q1 2020.
• GAAP diluted EPS was $0.85 and adjusted diluted EPS was $0.81, which were down 9% and 12% year-over-year, respectively.
• Orders for the quarter were $1.971B, down 2% year-over-year, resulting in a book-to-bill ratio of just under 1.0.
• Adjusted net income represented 12% of sales in Q2 2020, and EBITDA for the quarter was $444M with a pro forma net leverage of 1.3x.

Guidance

• The company will not provide full-year guidance given continued COVID-19 uncertainties.
• For Q3 2020, Amphenol expects sales in the range of $1.96B to $2.00B.
• For Q3 2020, Amphenol expects adjusted diluted EPS in the range of $0.84 to $0.86.
• The Q3 sales range represents a year-over-year decline of about 5% to 7% in U.S. dollars versus prior year.
• The Q3 adjusted diluted EPS range represents a year-over-year decline of about 9% to 12% versus prior year adjusted diluted EPS.
• Guidance assumptions explicitly include no new material pandemic disruptions and constant exchange rates for Q3.