How much of Amphenol's Q1 growth came from acquisitions versus organic growth?

Net sales rose 9% in U.S. dollars. Foreign currency reduced growth by about 1 percentage point, and acquisitions added about 4 points. Organic growth was 6%, driven by volume and pricing.

Why is GAAP EPS well above adjusted EPS?

The reverse is true here. GAAP diluted EPS of $0.87 exceeded adjusted EPS of $0.80 because GAAP results included a $29.7M excess tax benefit from stock-based compensation ($0.05 per share) and an $18.6M discrete tax benefit ($0.03 per share). Management excludes these items to calculate adjusted EPS.

What does the new buyback mean for shareholders, and how does it compare to the prior program?

The new program authorizes up to $2.0 billion of common stock repurchases over three years, beginning April 29, 2024. It replaces the 2021 $2 billion program, which the company fully used in April 2024. Authorization does not commit the company to a specific pace of repurchases. In Q1 it bought back $154M of stock.

How is Amphenol's balance sheet positioned after the quarter?

Cash and short-term investments totaled $1.96B at March 31, 2024. Total debt was about $4.31B, including $752.5M classified as current, up from $353.8M at year-end 2023. Net debt was roughly $2.3B. Management has indicated it will continue deploying capital through buybacks, dividends and acquisitions.

Is the 8-K's financial information considered filed with the SEC?

No. The information in Items 2.02 and 8.01, including the press release in Exhibit 99.1, is furnished rather than filed. Under Section 18 of the Exchange Act, it is not subject to that section's liabilities unless the company specifically references it in a future filing.

APH 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed April 24, 2024. Cited figures are marked; the original filing is the authoritative source.

Amphenol reported first-quarter 2024 net sales of $3.26 billion^a, up 9% in U.S. dollars and 6% organically from the prior year.

Growth came from IT datacom, commercial air, automotive and defense, plus acquisitions, partly offset by softness in mobile networks, broadband and industrial. GAAP diluted EPS was $0.87^b, up 23%, and adjusted diluted EPS was $0.80, up 16%. Both exceeded the high end of the company's guidance.

Adjusted operating margin was 21.0%, a first-quarter record. Operating cash flow was $599 million^c and free cash flow was $506 million. The company returned $286 million to shareholders in the quarter, repurchasing 1.4 million shares for $154 million and paying $132 million in dividends.

It completed the remaining authorization under its 2021 $2 billion^d buyback and authorized a new three-year, $2 billion open-market repurchase program beginning April 29, 2024. Cash and short-term investments were $1.96 billion at quarter-end, while total debt was about $4.3 billion, with current maturities rising to $752.5 million. For the second quarter of 2024, Amphenol guided to sales of $3.24 billion to $3.30 billion, a 6% to 8% increase year over year, and adjusted diluted EPS of $0.79 to $0.81, a 10% to 13% increase.

Management said the economic environment remains uncertain. The company expects no reconciling non-GAAP items for Q2 guidance.

02—Key points

Key Highlights

Q1 2024 net sales of $3.26B, up 9% in USD and 6% organically, led by IT datacom, commercial air, automotive and defense.
GAAP diluted EPS of $0.87 (up 23%); adjusted diluted EPS of $0.80 (up 16%), above the high end of guidance. Q1 tax items, including $29.7M of excess stock comp tax benefits and an $18.6M discrete benefit, boosted GAAP EPS.
Adjusted operating margin of 21.0%, a first-quarter record, with Communications Solutions margin improving to 22.6% from 20.5%.
Operating cash flow of $599.5M and free cash flow of $505.7M.
Total capital returned of $286M in Q1 ($154M buybacks, $132M dividends).
New three-year, $2.0B open-market buyback authorized, starting April 29, 2024, replacing the 2021 program that expires April 27, 2024.
Q2 2024 guidance: sales of $3.24B to $3.30B (+6% to 8%) and adjusted diluted EPS of $0.79 to $0.81 (+10% to 13%).

03—Questions

Frequently Asked Questions

How much of Amphenol's Q1 growth came from acquisitions versus organic growth?
Net sales rose 9% in U.S. dollars. Foreign currency reduced growth by about 1 percentage point, and acquisitions added about 4 points. Organic growth was 6%, driven by volume and pricing.
Why is GAAP EPS well above adjusted EPS?
The reverse is true here. GAAP diluted EPS of $0.87 exceeded adjusted EPS of $0.80 because GAAP results included a $29.7M excess tax benefit from stock-based compensation ($0.05 per share) and an $18.6M discrete tax benefit ($0.03 per share). Management excludes these items to calculate adjusted EPS.
What does the new buyback mean for shareholders, and how does it compare to the prior program?
The new program authorizes up to $2.0 billion of common stock repurchases over three years, beginning April 29, 2024. It replaces the 2021 $2 billion program, which the company fully used in April 2024. Authorization does not commit the company to a specific pace of repurchases. In Q1 it bought back $154M of stock.
How is Amphenol's balance sheet positioned after the quarter?
Cash and short-term investments totaled $1.96B at March 31, 2024. Total debt was about $4.31B, including $752.5M classified as current, up from $353.8M at year-end 2023. Net debt was roughly $2.3B. Management has indicated it will continue deploying capital through buybacks, dividends and acquisitions.
Is the 8-K's financial information considered filed with the SEC?
No. The information in Items 2.02 and 8.01, including the press release in Exhibit 99.1, is furnished rather than filed. Under Section 18 of the Exchange Act, it is not subject to that section's liabilities unless the company specifically references it in a future filing.

04—Continue

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