Summary
Amphenol Corporation's third quarter and nine-month period ending September 30, 2016, demonstrates robust top-line growth, largely driven by strategic acquisitions, most notably the significant acquisition of FCI Asia Pte Ltd. Net sales saw a substantial increase, reflecting strong performance in the Interconnect Products and Assemblies segment, which constitutes the majority of the company's revenue. While the company experienced increased selling, general, and administrative expenses and acquisition-related costs, operating income and margins remained healthy, particularly when adjusted for these one-time expenses. The company's financial position remains strong, supported by healthy operating cash flow and a solid liquidity position, including a significant revolving credit facility. Dividend payouts and share repurchases continue, indicating confidence in ongoing financial performance and commitment to shareholder returns. Investors should note the company's continued investment in growth through acquisitions, which, while impacting short-term margins, are expected to drive long-term value.
Financial Highlights
50 data points| Revenue | $1.64B |
| Cost of Revenue | $1.10B |
| Gross Profit | $537.30M |
| SG&A Expenses | $204.70M |
| Operating Income | $326.30M |
| Interest Expense | $18.10M |
| Net Income | $227.10M |
| EPS (Basic) | $0.18 |
| EPS (Diluted) | $0.18 |
| Shares Outstanding (Basic) | 1.24B |
| Shares Outstanding (Diluted) | 1.26B |
Key Highlights
- 1Net sales increased by 12% in U.S. dollars for the nine months ended September 30, 2016, reaching $4,635.3 million, compared to $4,138.2 million in the prior year period, primarily driven by acquisitions and strength in IT/data communications, industrial, and automotive markets.
- 2Operating income for the nine months ended September 30, 2016, was $866.1 million, representing a 6.2% increase from $815.7 million in the prior year period, though operating margin slightly decreased due to acquisition-related expenses.
- 3The company successfully completed the significant acquisition of FCI Asia Pte Ltd for approximately $1,178.6 million on January 8, 2016, which is expected to bolster its Interconnect Products and Assemblies segment.
- 4Cash flow from operating activities remained strong, increasing to $728.7 million for the nine months ended September 30, 2016, up from $708.2 million in the comparable prior year period.
- 5The company repurchased 4.0 million shares of Common Stock for $229.6 million during the nine months ended September 30, 2016, as part of its ongoing share repurchase program.
- 6The company increased its quarterly dividend rate from $0.14 to $0.16 per share, effective for dividends declared in the fourth quarter of 2016, demonstrating a commitment to returning capital to shareholders.
- 7Goodwill increased significantly from $2,692.9 million at December 31, 2015, to $3,707.8 million at September 30, 2016, primarily due to the FCI acquisition and other smaller acquisitions.