APH Q2 2024 Earnings

Call Details

• Call Title: Amphenol Corporation Q2 2024 Earnings Call
• Date: July 24, 2024 at 5:00 PM UTC
• Management Team:
  • Craig Lampo (Chief Financial Officer)
  • Adam Norwitt (Chief Executive Officer)
  • Michael Senno (Senior Vice President of Finance)

Call Summary

Financial Performance

• Company reported record sales of $3.61B in Q2 2024, which was up 18% in U.S. dollars, 19% in local currencies, and 11% organically versus Q2 2023.
• Bookings were a record $4.06B in the quarter, producing a book-to-bill of 1.12 to 1.
• GAAP operating income was $699M and GAAP operating margin was 19.4% in the quarter, which included $70M of acquisition-related costs.
• Excluding acquisition-related costs, adjusted operating income was $769M and adjusted operating margin was a record 21.3%, up 90 bps year-over-year and up 30 bps sequentially.
• GAAP diluted EPS was $0.41 and adjusted diluted EPS was $0.44, with adjusted diluted EPS up 22% year-over-year from $0.36.
• Second-quarter operating cash flow was $664M and free cash flow after capex was $528M, representing 120% and 95% of adjusted net income respectively.
• Excluding acquisition-related costs, Q2 2024 EBITDA was $900M and net leverage at quarter end was 1.2x.

Guidance

• Third-quarter 2024 sales are expected in the range of $3.7B to $3.8B, which implies growth of 16% to 19% versus Q3 2023.
• Third-quarter adjusted diluted EPS is expected in the range of $0.43 to $0.45, which implies adjusted EPS growth of 10% to 15% versus Q3 2023.
• Guidance assumes continuation of current market conditions and constant currency exchange rates.
• Guidance includes CIT and Luce US but excludes acquisitions that have not yet closed, and the company disclosed both included acquisitions are currently operating below the corporate average profitability.
• Quarterly interest expense net of interest income is expected to be approximately $45M in Q3 as a result of recent $1.5B bond issuance and CIT close.
• Company expects adjusted effective tax rate to be 24% for Q3 2024 and for the full year 2024.