Exchange: LSE | Sector: Technology | Industry: Hardware Equipment Parts
Q4 2024
Published: Feb 7, 2025
Earnings Highlights
Revenue of $4.32B up 29.8% year-over-year
EPS of $0.59 increased by 44.2% from previous year
Gross margin of 34.3%
Net income of 746.20M
""The strong demand across our sectors, particularly from the automotive and data communication markets, is a testament to our innovative strategies and execution capabilities."" - CEO
Amphenol Corporation reported impressive financial results for QQ4 2024, highlighted by a substantial increase in revenue to $4.32 billion, marking a year-on-year growth of 29.76%. This growth trajectory was accompanied by a significant improvement in net income of $746.2 million, representing a 45.06% increase from the previous year. The quarter not only showcases Amphenol's capability to expand its market share but also reflects its strong operational efficiency, illustrated by an operating income margin of 22.09%. Management emphasized a robust demand across all segments, particularly driven by increased investment in data communications and automotive markets. This favorable market position enhances Amphenol’s outlook as it continues to execute its strategy focused on innovation and expansion into new markets.
Key Performance Indicators
Revenue
4.32B
QoQ: 6.91% | YoY:29.76%
Gross Profit
1.48B
34.29% margin
QoQ: 9.12% | YoY:34.56%
Operating Income
953.70M
QoQ: 16.38% | YoY:38.22%
Net Income
746.20M
QoQ: 23.46% | YoY:45.06%
EPS
0.62
QoQ: 24.00% | YoY:44.19%
Revenue Trend
Margin Analysis
Key Insights
**Revenue**: $4.32 billion, up 29.76% YoY, and 6.91% QoQ
**Net Income**: $746.2 million, a 45.06% YoY increase and 23.46% QoQ
**Gross Profit Margin**: 34.29%, an improvement of 2.31 percentage points YoY
**Operating Income**: $953.7 million, translating to an operating income margin of 22.09%
Financial Highlights
### Financial Performance Highlights
- Revenue: $4.32 billion, up 29.76% YoY, and 6.91% QoQ
- Net Income: $746.2 million, a 45.06% YoY increase and 23.46% QoQ
- Gross Profit Margin: 34.29%, an improvement of 2.31 percentage points YoY
- Operating Income: $953.7 million, translating to an operating income margin of 22.09%
The metrics indicate a strengthened position within the technology hardware equipment sector, with Amphenol’s gross profit and operating income margins reflecting operational efficiencies resulting from strategic cost management initiatives. Furthermore, an impressive effective tax rate of 17.4% illustrates effective tax planning practices.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
4.32B
29.76%
6.91%
Gross Profit
1.48B
34.56%
9.12%
Operating Income
953.70M
38.22%
16.38%
Net Income
746.20M
45.06%
23.46%
EPS
0.62
44.19%
24.00%
Key Financial Ratios
currentRatio
2.37
grossProfitMargin
34.3%
operatingProfitMargin
22.4%
netProfitMargin
17.3%
returnOnAssets
3.48%
returnOnEquity
7.62%
debtEquityRatio
0.74
operatingCashFlowPerShare
$0.7
freeCashFlowPerShare
$0.54
dividendPayoutRatio
26.7%
priceToBookRatio
8.56
priceEarningsRatio
28.07
Net Income vs. Revenue
Expense Breakdown
Management Commentary
### Management Commentary
- Strategy: "We are committed to advancing our technologies to capture growing demand, especially in data communication and automotive sectors, which are witnessing unprecedented growth."
- Market Conditions: "The expansion of 5G networks and electric vehicle adoption is set to further drive our sales growth. We expect strong momentum to continue into 2025."
These insights illustrate management's focus on leveraging industry trends to stimulate future growth, indicating a proactive stance in responding to evolving market dynamics.
"The strong demand across our sectors, particularly from the automotive and data communication markets, is a testament to our innovative strategies and execution capabilities."
— CEO
"Looking forward, we will continue to allocate resources to R&D to ensure we are at the forefront of technological advancements and sustainable practices in the industry."
— CFO
Forward Guidance
Looking ahead, Amphenol has set positive guidance for Q1 2025, projecting revenue growth between 6% to 8%. Management also highlighted ongoing strategic investments in R&D to facilitate growth in emerging markets such as EVs and AI applications. Key factors for investors to monitor include potential supply chain disruptions and competitive pressures in the semiconductor sector.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
0HFB.L Focus
34.29%
22.40%
7.62%
28.07%
0HVB.L
0.00%
0.45%
1.07%
26.65%
0J5Q.L
56.00%
23.90%
3.48%
26.58%
0KV3.L
0.00%
27.60%
2.99%
10.04%
0JQR.L
0.00%
-21.00%
-1.34%
-17.47%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Amphenol Corporation's strong performance in QQ4 2024 demonstrates its effective business model and capacity to navigate the competitive landscape of the technology sector. Investors should view the company positively as it capitalizes on favorable industry trends, coupled with a robust balance sheet and strategic focus on high-growth sectors. The company’s ability to maintain profitability while investing in innovation positions it as a compelling investment opportunity despite inherent market risks.
Key Investment Factors
Growth Potential
Amphenol's diverse portfolio and investment in high-growth areas such as 5G and electric vehicles position it well for continued growth. Analysts expect the company to benefit from rising demand across its segments, translating into increased market share.
Profitability Risk
The primary risks include fluctuations in raw material costs, supply chain constraints, and intense competition within the technology sector that may pressure margins and limit pricing power.
Financial Position
The company maintains a strong financial position with a current ratio of 2.37, indicating excellent liquidity. Its net debt stands at $3.57 billion, providing a manageable debt level relative to its cash flow generation capabilities.
SWOT Analysis
Strengths
Strong revenue growth driven by expanding market presence.
Diverse product offerings across multiple technology segments.