Amphenol Q3 profit rises despite revenue decline

Amphenol Corporation (NYSE:), the Wallingford-based fiber optic connector producer, reported a rise in its third-quarter profit to $513.9 million, up from $496.6 million a year earlier, even as revenues dipped. The firm’s earnings per share increased from 80 cents to 83 cents, despite a 3% drop in adjusted earnings per share to 78 cents year-on-year.

The company’s revenue for the quarter declined to $3.2 billion, down from the previous year’s figure of $3.3 billion. This was offset by reductions in the cost of sales, which fell to $2.15 billion, and income tax provisions, which decreased to $115.2 million.

Despite the drop in revenue, these financial outcomes surpassed market predictions by FactSet, which had forecasted a revenue of $3.1 billion and a net income of $455 million for the quarter.

The Wallingford firm’s results highlight its ability to boost profits despite facing revenue challenges. This underscores the company’s operational efficiency during the quarter, as it managed to reduce costs and improve its bottom line.

According to InvestingPro data, Amphenol Corporation’s Market Cap stands at 47.87B USD, with a P/E Ratio of 24.96 and a Revenue of 12562.4M USD for the last twelve months leading up to the second quarter of 2023. Its Gross Profit for the same period is 4032.6M USD, which accounts for a Gross Profit Margin of 32.1%.

InvestingPro Tips shed light on the company’s performance as well. The company yields a high return on invested capital and has consistently increased earnings per share. It has also raised its dividend for 11 consecutive years, indicating a reliable return for its shareholders. Despite a high P/E ratio relative to near-term earnings growth, it remains a prominent player in the Electronic Equipment, Instruments & Components industry.

For more detailed tips and insights, you can visit InvestingPro, which includes 15 additional tips about Amphenol Corporation. These tips provide a comprehensive analysis of the company’s financial health, stock performance, and industry standing.

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