APH Q4 2023 Earnings

Call Details

• Call Title: Amphenol Corporation Q4 2023 Earnings Call
• Date: January 24, 2024 at 6:00 PM UTC
• Management Team:
  • Craig Lampo (Chief Financial Officer)
  • Adam Norwitt (Chief Executive Officer)

Call Summary

Financial Performance

• Fourth quarter sales were $3,327,000,000, up 3% in U.S. dollars, up 2% in local currencies, and down 1% organically versus Q4 2022.
• Fourth quarter GAAP operating income was $690,000,000 and GAAP operating margin was 20.7%, which increased 10 basis points versus both Q4 2022 and Q3 2023.
• Fourth quarter adjusted operating income was $706,000,000 and adjusted operating margin was a quarterly record of 21.2%, up 30 basis points year-over-year and 40 basis points sequentially.
• Full year 2023 sales were $12,555,000,000, down 50 basis points in U.S. dollars, flat in local currencies, and down 3% organically versus 2022.
• Full year GAAP operating income was $2,560,000,000 and GAAP operating margin was 20.4%, while full year adjusted operating margin was 20.7%, flat versus 2022 on an adjusted basis.
• Orders in Q4 were $3,164,000,000, up 10% versus Q4 2022 and flat sequentially, producing a book-to-bill of 0.95 to 1 for the quarter and a full-year book-to-bill of 0.9821.

Guidance

• First quarter 2024 sales guidance is $3.1 billion to $3.4 billion, which represents growth of 2% to 4% versus Q1 2023.
• First quarter 2024 adjusted diluted EPS guidance is $0.71 to $0.73, which represents growth of 3% to 6% versus Q1 2023.
• The company expects its 2024 adjusted effective tax rate to be approximately 24%.
• Guidance assumes continuation of current market conditions and constant exchange rates as stated by the company.
• Management expects typical seasonal moderations in several end markets in Q1, including an anticipated ~35% seasonal decline in mobile devices.
• Segment-level expectations for Q1 include a mid-single-digit sequential decline in defense sales and a high single-digit sequential seasonal moderation in automotive sales.