APH Q3 2022 Earnings

Call Details

• Call Title: Amphenol Corporation Q3 2022 Earnings Call
• Date: October 26, 2022 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 $3.3B and record GAAP and adjusted diluted EPS of $0.80 in Q3 2022.
• Sales increased 17% in U.S. dollars, 21% in local currencies, and 18% organically versus Q3 2021.
• Sequential sales increased 5% in U.S. dollars, 7% in local currencies, and 6% organically versus Q2 2022.
• GAAP operating income was $681M and adjusted operating income was $693M in Q3 2022.
• GAAP operating margin was 20.7% and adjusted operating margin was 21.0%, with adjusted margin up 70 basis points year-over-year and 30 basis points sequentially.
• Q3 operating cash flow was a record $576M and free cash flow was a record $457M, representing 116% and 92% of adjusted net income, respectively.
• Q3 EBITDA was $806M and net leverage ratio was 1.1x at quarter end.

Guidance

• Company guided Q4 2022 sales of $3.09B to $3.15B and adjusted diluted EPS of $0.73 to $0.75.
• Guidance implies Q4 sales growth of 2% to 4% and adjusted diluted EPS growth of 4% to 7% versus Q4 2021.
• Company guided full-year 2022 sales of $12.474B to $12.534B and full-year adjusted diluted EPS of $2.95 to $2.97, implying full-year sales growth of 15% and EPS growth of 19% to 20%.
• Company expects a currency headwind in Q4 of approximately a 1 percentage-point sequential sales impact and a 5 percentage-point year-over-year sales impact assuming current rates.
• Company expects Q4 interest expense of approximately $38M and quarterly 2023 interest expense of approximately $40M based on current debt balances and projected rates.
• Guidance explicitly assumes that market conditions do not meaningfully worsen and uses a constant-exchange-rate assumption for the provided ranges.