APH Q3 2020 Earnings

Call Details

• Call Title: Amphenol Corporation Q3 2020 Earnings Call
• Date: October 21, 2020 at 5:00 PM UTC
• Management Team:
  • Craig Lampo (Chief Financial Officer)
  • Adam Norwitt (Chief Executive Officer)

Call Summary

Financial Performance

• Company reported record sales of $2.323B in Q3 2020 and GAAP diluted EPS of $1.12 for the quarter.
• Sales were up 11% in U.S. dollars, up 10% in local currencies, and up 9% organically versus Q3 2019.
• Operating income was $476M and operating margin was 20.5%, which improved 250 basis points sequentially and 80 basis points year-over-year.
• Interconnect segment, representing 96% of sales, was up 11% in U.S. dollars and 10% in local currencies versus prior year.
• Cable segment, representing 4% of sales, was up 2% in U.S. dollars and 5% in local currencies versus prior year.
• Adjusted net income was $336M, representing 14% of sales, and adjusted diluted EPS was $1.09, up 15% versus prior year.
• Orders were $2.275B, up 9% versus prior year and up 15% sequentially, producing a book-to-bill of 0.98 to 1.

Guidance

• Q4 2020 revenue guidance is $2.160B to $2.200B and adjusted diluted EPS guidance is $0.98 to $1.00.
• Guidance implies Q4 sales and adjusted diluted EPS growth versus prior year of flat to up 2%.
• Full-year 2020 revenue guidance is $8.333B to $8.373B and adjusted diluted EPS guidance is $3.59 to $3.61.
• Full-year guidance represents sales growth of 1% to 2% and an adjusted diluted EPS decline of 3% to 4% versus prior year.
• Guidance assumes no new material pandemic disruptions and constant exchange rates.
• Company explicitly attributes the expected full-year EPS decline to incremental costs and disruptions from COVID-19 incurred mainly in H1 2020.