Electronic and fiber optic connector company Amphenol Corporation APH shares are trading lower after B of A Securities analyst Wamsi Mohan downgraded the stock from Buy to Neutral and lowered its price target from $80 to $71.The analyst says their checks indicate that design issues with NVIDIA Corporation’s GB200-based systems may lead to changes that could reduce Amphenol’s AI revenue opportunities.Specifically, adjustments to address system overheating might result in replacing Amphenol’s flyover cables w ...

champpixsQuality Stocks The SPDR S&P 500 Trust ETF (SPY) added 2.34% in August as it continues its excellent run this year. Vanguard's Dividend Appreciation Index Fund ETF Shares (VIG) posted a more impressive gain of 3.32%, outperforming SPY during the month for the second time this year. And my watchlist performed the best, positing a gain of 3.41%. Despite another strong return 2024 has not been a good year for my watchlist. Year-to-date, the watchlist is up only 3.47%, meanwhile VIG is up 15.64% and ...

A month has gone by since the last earnings report for Amphenol (APH) . Shares have added about 8.1% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Amphenol due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. Amphenol’s Q2 Earnings Beat Estimates, Revenues Up Y/YAmph ...

We are in the last leg of the second-quarter earnings season, which so far remains strong. Looking at the second quarter as a whole, total earnings of the S&P 500 Index are expected to be up 9.4% from the same period last year on 5.4% higher revenues. If it materializes, this will be the highest quarterly earnings growth since the first quarter of 2022. Meanwhile, irrespective of the S&P 500 components, a majority of all listed companies have already reported financial results of their last completed quarte ...

Efficiency level measures a company’s capability to transform available input into output and is often considered an important parameter for gauging its potential to make profits. A company with a high efficiency level is expected to provide stellar returns as it is believed to be positively correlated with price performance.However, at times, it becomes difficult to measure the efficiency level of a company. This is why one must consider popular efficiency ratios while selecting stocks. These efficiency ra ...

Today we will be looking at hypergrowth stocks with the potential to 10X your investment. All but one of the stocks discussed below has achieved hypergrowth – growing by 40% or more – over the last 12 months. Each share is also priced at less than $100 with most shares well below $100.  I have chosen that price level because 10X growth is difficult if the share is priced above $100.None of the stocks discussed below trade for less than $10. Instead, these companies tend to be relatively well established and ...

Urupong Quality Stocks The SPDR S&P 500 Trust ETF (SPY) added 1.21% in July following a late rally in a very volatile month. Vanguard's Dividend Appreciation Index Fund ETF Shares (VIG) posted a more impressive gain of 3.97%, outperforming SPY during the month for the first time this year. And my watchlist performed the best of the three, positing a gain of 5.16%. Despite the strong return in July 2024 has not been a good year for my watchlist. Year-to-date, my watchlist is up a meager 0.06%, meanwhile VIG ...

Core Viewpoint - Amphenol Corporation has demonstrated exceptional performance with a 19% annual return over the past 20 years, positioning it as a leading compounder in the industrial sector [3][19]. Company Overview - Amphenol Corporation has a market capitalization of $47 billion and operates in various sectors including industrial, automotive, IT, defense, and mobile devices, with over 60% of sales generated outside North America [5][6]. - The company has a strong history of mergers and acquisitions, having acquired more than 50 companies in the last decade, which has contributed to its growth strategy [5][6]. Recent Performance - In the second quarter, Amphenol achieved record revenues of $3.61 billion, reflecting an 18% increase in U.S. dollars and an 11% organic growth rate [7][8]. - The operating income reached $769 million with an operating margin of 21.3%, a 90 basis points improvement from the previous year [7][8]. - The company generated $528 million in free cash flow, representing 95% of adjusted net income, and maintained a net debt of $4.1 billion with a net leverage ratio of 1.2x [9][8]. Shareholder Distributions - Amphenol currently pays a quarterly dividend of $0.165 per share, translating to a yield of 1.0%, with a five-year dividend CAGR of 13.6% [12][14]. - The company announced a 50% dividend increase during the 2Q24 earnings call, indicating a commitment to shareholder returns despite a low yield [12][14]. Future Growth & Valuation - The company recorded orders of $4.1 billion in the second quarter, indicating a book-to-bill ratio of 1.12x, suggesting strong future demand [15]. - Amphenol is pursuing additional acquisitions, including the purchase of CommScope's Outdoor Wireless Networks and Distributed Antenna Systems businesses for $2.1 billion, expected to enhance profitability [15][17]. - Analysts project Amphenol's EPS to grow by 17% this year, followed by 16% and 15% growth in the subsequent years [17]. Valuation Concerns - The stock is currently trading at a blended P/E ratio of 38.4x, significantly above its 10-year normalized P/E ratio of approximately 27x, indicating that much of the growth is already priced in [18][21]. - Despite the high valuation, the company is viewed as a strong long-term investment opportunity due to its robust business model and growth prospects [19][20].

Have you looked into how Amphenol (APH) performed internationally during the quarter ending June 2024? Considering the widespread global presence of this maker of fiber-optic products, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.In the current era of a tightly interconnected global economy, the proficiency of a company to penetrate international markets significantly influences its financial health and trajectory of growth. For ...

Part I - Financial Information [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) This section presents Amphenol's unaudited condensed consolidated financial statements for Q2 2024, including Balance Sheets, Income, Comprehensive Income, and Cash Flow, with notes on key events [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) **Total assets** increased to **$18.59 billion** by June 30, 2024, driven by **acquisitions**, while **total liabilities** grew to **$9.54 billion** due to increased long-term debt Condensed Consolidated Balance Sheet Highlights (in millions) | Account | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Total current assets | $6,971.8 | $6,835.3 | | Goodwill | $8,261.8 | $7,092.4 | | Other intangible assets, net | $1,308.7 | $834.8 | | **Total Assets** | **$18,586.8** | **$16,526.4** | | Total current liabilities | $3,455.8 | $3,152.7 | | Long-term debt, less current portion | $5,035.3 | $3,983.5 | | **Total Liabilities** | **$9,536.3** | **$8,099.9** | | **Total Equity** | **$9,030.6** | **$8,395.8** | [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) Q2 2024 **net sales** grew **18%** to **$3.61 billion**, with **net income** at **$524.8 million** and **diluted EPS** of **$0.41**, reflecting strong year-over-year performance Key Income Statement Data (in millions, except per share data) | Metric | Q2 2024 | Q2 2023 | H1 2024 | H1 2023 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $3,609.7 | $3,053.9 | $6,866.0 | $6,028.0 | | Gross profit | $1,213.1 | $991.7 | $2,302.1 | $1,935.1 | | Operating income | $698.8 | $619.9 | $1,383.7 | $1,211.6 | | Net income attributable to Amphenol | $524.8 | $460.5 | $1,073.5 | $899.7 | | Diluted EPS | $0.41 | $0.37 | $0.85 | $0.73 | [Condensed Consolidated Statements of Cash Flow](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flow) H1 2024 **operating cash flow** increased to **$1.26 billion**, with **$2.20 billion** used for **acquisitions**, primarily funded by new debt issuance Cash Flow Summary for Six Months Ended June 30 (in millions) | Activity | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,263.6 | $1,068.8 | | Net cash used in investing activities | $(2,195.7) | $(375.1) | | Net cash provided by (used in) financing activities | $743.4 | $(704.0) | | **Net decrease in cash and cash equivalents** | **$(222.5)** | **$(48.0)** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail a two-for-one **stock split**, **$1.5 billion** in new **senior notes** funding **$2.1 billion** in **acquisitions**, plus a new **$2.1 billion** acquisition agreement - A two-for-one **stock split** was approved on May 20, 2024, and became effective on June 12, 2024 All share and per-share data in the report have been retroactively adjusted to reflect this split[21](index=21&type=chunk)[22](index=22&type=chunk) - In April 2024, the company issued three series of new **senior notes** totaling **$1.5 billion** to help fund the CIT **acquisition** It also repaid **$350 million** of **3.20% Senior Notes** upon maturity[35](index=35&type=chunk)[37](index=37&type=chunk)[38](index=38&type=chunk) - The company completed two **acquisitions** for ~**$2.1 billion** in H1 2024, including the significant **acquisition** of Carlisle Interconnect Technologies (CIT) for ~**$2.0 billion** on May 21, 2024 This resulted in **$70.0 million** of **acquisition**-related expenses in Q2 2024[89](index=89&type=chunk)[90](index=90&type=chunk)[92](index=92&type=chunk) - On July 18, 2024, the company entered into an agreement to acquire CommScope's Mobile Networks Business for approximately **$2.1 billion** in cash, with the transaction expected to close in the first half of 2025[118](index=118&type=chunk) - A new **$2.0 billion stock repurchase program** was authorized in April 2024 The quarterly **dividend** was increased from **$0.11** to **$0.165** per share, effective Q3 2024[63](index=63&type=chunk)[66](index=66&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=40&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong Q2 2024 performance, with **net sales** up **18%** to **$3.6 billion** and **adjusted operating margin** at **21.3%**, highlighting robust **liquidity** and significant **acquisition** activity [Results of Operations](index=45&type=section&id=Results%20of%20Operations) Q2 2024 **net sales** grew **18%** to **$3.61 billion** (11% organically), driven by Communications Solutions and IT datacom/defense, with **adjusted operating margin** expanding to **21.3%** Net Sales Growth vs. Prior Year Period (Q2 2024) | Segment | Net Sales Growth (GAAP) | Constant Currency Growth | Organic Growth | | :--- | :--- | :--- | :--- | | Harsh Environment Solutions | 18% | 18% | 1% | | Communications Solutions | 24% | 25% | 23% | | Interconnect and Sensor Systems | 12% | 13% | 7% | | **Consolidated** | **18%** | **19%** | **11%** | - End market growth was driven by strong organic performance in IT datacom and defense, and moderate growth in commercial aerospace, mobile devices, mobile networks, and automotive markets[133](index=133&type=chunk) Reconciliation of GAAP to Adjusted (Non-GAAP) Results for Q2 2024 | Metric | Reported (GAAP) | Adjusted (Non-GAAP) | | :--- | :--- | :--- | | Operating Income | $698.8M | $768.8M | | Operating Margin | 19.4% | 21.3% | | Net Income | $524.8M | $553.8M | | Diluted EPS | $0.41 | $0.44 | [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained strong **liquidity** and generated **$1.26 billion** **operating cash flow** and **$1.03 billion** **free cash flow** in H1 2024, primarily funding **acquisitions** and shareholder returns - Primary sources of **liquidity** are cash from **operations**, cash on hand, and availability under its **$3.0B Revolving Credit Facility** and **Commercial Paper Programs**[158](index=158&type=chunk)[175](index=175&type=chunk) Free Cash Flow for Six Months Ended June 30 (in millions) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Operating Cash Flow (GAAP) | $1,263.6 | $1,068.8 | | Capital expenditures (net of disposals) | $(230.2) | $(191.5) | | **Free Cash Flow (Non-GAAP)** | **$1,033.4** | **$877.3** | - In H1 2024, the company used cash for **acquisitions** (**$2.1B**), **stock repurchases** (**$344.2M**), and **dividends** (**$263.8M**) This was partly funded by issuing **$1.5B** in new **senior notes**[170](index=170&type=chunk)[172](index=172&type=chunk)[180](index=180&type=chunk) - A new **$2.0 billion stock repurchase program** was authorized in April 2024, replacing the expiring 2021 program[184](index=184&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=68&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary **market risks** relate to **foreign currency exchange rates** and **interest rate** fluctuations, managed through a mix of **fixed** and **variable rate debt** - The company is exposed to **market risks** from **foreign currency exchange rates** and changes in **interest rates**[201](index=201&type=chunk) - **Interest rate** risk is managed with a mix of **fixed-rate senior notes** and **variable-rate debt facilities** The company is exposed to higher **interest costs** on its **variable-rate debt** (**Commercial Paper Programs**, **Revolving Credit Facility**) due to recent increases in the federal funds rate[204](index=204&type=chunk) [Item 4. Controls and Procedures](index=69&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including CEO and CFO, concluded the company's **disclosure controls and procedures** were effective as of June 30, 2024, with no material changes in **internal control over financial reporting** - Management, including the CEO and CFO, concluded that the company's **disclosure controls and procedures** were effective as of the end of the period covered by the report[205](index=205&type=chunk) - No change in **internal control over financial reporting** occurred during the most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, **internal controls**[206](index=206&type=chunk) Part II - Other Information [Item 1. Legal Proceedings](index=70&type=section&id=Item%201.%20Legal%20Proceedings) The company is party to normal course **legal actions** but does not expect them to have a material adverse effect on its financial condition, results of operations, or cash flows - The company does not expect any existing **legal or regulatory action** to have a material adverse effect on its financial condition, results of operations or cash flows[116](index=116&type=chunk)[207](index=207&type=chunk) [Item 1A. Risk Factors](index=70&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the company's **risk factors** as disclosed in its Annual Report on Form 10-K for the fiscal year ended December 31, 2023 - There have been no material changes to the Company's **risk factors** from the 2023 Annual Report on Form 10-K[208](index=208&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=70&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) A new **$2.0 billion stock repurchase program** was authorized in April 2024, with **3.1 million shares** repurchased for **$190.4 million** in Q2 2024 - A new **$2.0 billion stock repurchase program** was authorized by the Board on April 23, 2024, effective through April 28, 2027[209](index=209&type=chunk) Stock Repurchases for Q2 2024 (in millions, except per share data) | Period | Total Shares Purchased | Average Price Paid per Share | Total Cost | | :--- | :--- | :--- | :--- | | April 2024 | 1.26 | $57.07 | $71.8 | | May 2024 | 1.06 | $64.37 | $68.4 | | June 2024 | 0.75 | $67.12 | $50.2 | | **Total Q2** | **3.07** | **$62.05** | **$190.4** | [Item 3. Defaults Upon Senior Securities](index=71&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon **senior securities** during the period - None[212](index=212&type=chunk) [Item 5. Other Information](index=71&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a **Rule 10b5-1** or non-**Rule 10b5-1 trading arrangement** during Q2 2024 - No director or officer of the Company adopted or terminated a "**Rule 10b5-1 trading arrangement**" or "**non-Rule 10b5-1 trading arrangement**" during the three months ended June 30, 2024[213](index=213&type=chunk) [Item 6. Exhibits](index=72&type=section&id=Item%206.%20Exhibits) This section lists all **exhibits** filed with the Form 10-Q, including corporate governance documents, debt agreements, employee benefit plans, and required certifications