Today I added $APH (-2%) today.
Ampehnol published its quarterly figures last week:
Amphenol delivered an impressive performance in Q4 2024 with revenue up 30% year-on-year to USD 4.318 billion. The company's focus on AI connectivity technologies and strategic market diversification has proven successful. Of particular note is the IT datacom market, which, driven by AI applications, recorded a 76% increase in revenue and contributed significantly to the quarterly success.
Financial highlights
- Revenue: USD 4.318 billion, an increase of 30% year-on-year
- Earnings per share: 0.55 US dollars (adjusted), compared to 0.59 US dollars according to GAAP
- Operating margin: 22.4%, an increase of 120 basis points year-over-year
- Operating cash flow: 847 million US dollars
Outlook and guidance
For the first quarter of 2025, Amphenol forecasts revenue between $4.0 billion and $4.1 billion, with adjusted EPS guidance of $0.49 to $0.51. The company expects continued growth in AI-related investments and mid-single-digit sequential growth in the IT datacom market. These forecasts point to continued positive momentum into 2025.
Management commentary
CEO Adam Norwood emphasized the company's strategic positioning in AI technologies: "The revolution in AI continues to create a unique opportunity for Amphenol." He also highlighted the company's decentralized structure as a particular strength: "Our unique entrepreneurial organization has created a new position of strength."
Questions and answers
During the earnings call, analysts inquired about Amphenol's strategies to address potential tariff challenges as well as its performance in the automotive and mobile device markets. The company expressed confidence in its flexibility and growth opportunities, particularly in the electric and conventional vehicle markets.
Risks and challenges
- Potential tariff increases could have an impact on cost structures.
- Declining sales in the automotive market, particularly in Europe, pose a risk.
- Disruptions in the supply chain could affect production schedules.
- Market saturation in certain segments could limit growth.
- Macroeconomic pressures, including currency fluctuations, could impact financial results.
Source:
