Amphenol(US:APH) Huachuang Securities·2024-11-01 10:28Investment Rating - The report does not explicitly mention the investment rating for Amphenol (APH) [1][2][3] Core Views - Amphenol's FY24Q3 revenue reached $4 04 billion (YoY +26% QoQ +12%) exceeding the upper end of the previous guidance of $3 8 billion [1][5] - Net income attributable to Amphenol was $604 4 million (YoY +17 61% QoQ +15 71%) with adjusted diluted EPS of $0 48 (YoY +17%) surpassing the guidance of $0 45 [1][5] - Adjusted operating margin hit a record high of 21 9% [1][5] - Orders in Q3 reached a record $4 412 billion (YoY +39% QoQ +9%) with a book-to-bill ratio of 1 09:1 driven by strong IT datacom market performance [1][7] - AI-related products accounted for more than half of the YoY growth in the IT datacom market [1][12] Revenue Breakdown by Segment - Harsh Environment Solutions: $1 194 billion (YoY +35%) [10][11] - Communications Solutions: $1 686 billion (YoY +32%) [10][11] - Interconnect and Sensor Systems: $1 16 billion (YoY +12%) [10][11] AI-Related Business - AI-related products contributed significantly to the growth in the IT datacom market accounting for more than half of the YoY and QoQ growth [12] - The company provides industry-leading high-speed products with the highest operating speeds and lowest latency along with efficient power interconnect products for high-power consumption chips [12] Q4 2024 Guidance - Q4 2024 revenue is expected to be between $3 95 billion and $4 05 billion (YoY +19% to +22%) [13] - Adjusted diluted EPS for Q4 is projected to be $0 48 to $0 50 (YoY +17% to +22%) [13] - Full-year 2024 revenue is expected to be between $14 855 billion and $14 955 billion (YoY +18% to +19%) with adjusted diluted EPS of $1 82 to $1 84 (YoY +21% to +22%) [13] Key Financial Metrics - Operating cash flow in Q3 was $704 million representing 117% of net income [16] - Free cash flow was $476 million representing 79% of net income [16] - The company repurchased 2 7 million shares at an average price of $65 per share returning $308 million to shareholders in Q3 [16] - Total debt at the end of Q3 was $5 5 billion with net debt of $3 9 billion and total liquidity of $4 6 billion [16]