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Amphenol Corporation reported third quarter 2021 results.
Third Quarter 2021 Highlights:
- Record sales of $2.818 billion, up 21% in U.S. dollars and 13% organically2 compared to the third quarter 2020
- Record GAAP diluted EPS of $0.67, up 20% compared to the prior year period
- Record Adjusted Diluted EPS2 of $0.65, up 18% compared to the prior year period
- Operating Margin of 20.3%
- Operating Cash Flow and Free Cash Flow2 of $328 million and $238 million, respectively
- Quarterly dividend increased by 38% from $0.145 to $0.20 per share
“We are pleased to have closed the third quarter with sales and Adjusted Diluted EPS2 exceeding the high end of our guidance,” said Amphenol President and Chief Executive Officer, R. Adam Norwitt. “Sales increased by a strong 21% in the quarter, with broad-based growth across most of our end markets, including contributions from the Company’s acquisition program.
“During the third quarter, Amphenol continued to deploy its financial strength in a variety of ways to increase shareholder value. To that end, the Company purchased 2.3 million shares of its common stock for $171 million. The Company also paid dividends of $87 million, resulting in total capital returned to shareholders during the third quarter of $258 million.”
Increase in Quarterly Dividend
On October 26, 2021, the Company’s Board of Directors approved a 38% increase in the Company’s quarterly dividend, from $0.145 per share to $0.20 per share. The new dividend amount will be paid on January 12, 2022 to shareholders of record as of December 21, 2021.
Fourth Quarter and Full Year 2021 Outlook
The current market environment remains highly uncertain, with significant supply chain and inflationary challenges as well as the ongoing pandemic. Given this, and assuming constant exchange rates, for the fourth quarter 2021, Amphenol expects sales to be in the range of $2.690 billion to $2.750 billion, representing 11% to 13% growth over the fourth quarter of 2020, and Adjusted Diluted EPS2 in the range of $0.61 to $0.63, representing 7% to 11% growth over the fourth quarter of 2020. For the full year 2021, we expect sales to be in the range of $10.540 billion to $10.600 billion, representing 23% growth over 2020, and Adjusted Diluted EPS2 in the range of $2.39 to $2.41, representing 28% to 29% growth over 2020.
“Despite the ongoing challenges and uncertainties we continue to face around the world, we are pleased with the platform of strength that has been created by the Company’s performance,” Mr. Norwitt continued. “The revolution in electronics is accelerating, thereby creating exciting and dynamic long-term growth opportunities for Amphenol across each of our diversified end markets. We believe these opportunities will enable a further, long-term increase in the demand for our ever expanding range of high-technology interconnect, sensor and antenna products. Our ongoing drive to leverage our competitive advantages and create sustained financial strength, as well as our initiatives to expand our product offerings, both organically and through our acquisition program, have created an excellent base for the Company’s future performance. I am confident in the ability of our outstanding entrepreneurial management team to continue to dynamically adjust to changing market conditions, to capitalize on the wide array of growth opportunities that arise in all market cycles and to continue to generate sustainable long-term value for our shareholders and other stakeholders. Most importantly, I remain truly grateful to our team for their extraordinary efforts to protect the safety and health of our employees around the world throughout the ongoing pandemic, all while continuing to strongly support our customers and drive outstanding operating performance.”