Why Is Amphenol (APH) Down 11.7% Since Last Earnings Report?

Core Viewpoint - Amphenol's recent earnings report shows strong performance with significant year-over-year growth in both earnings and revenues, despite a recent decline in share price [1][2][3]. Financial Performance - Amphenol's Q4 2024 adjusted earnings were 55 cents per share, exceeding estimates by 10% and reflecting a 34.1% increase year-over-year [2]. - Net sales for Q4 2024 reached $4.32 billion, a 29.8$1.26 billion, up 40.2% year-over-year [3]. - Communications Solutions, making up 44.7% of net sales, reported $1.93 billion in sales, a 43.3$1.13 billion, up 4.3% year-over-year [4]. Profitability Metrics - Gross margin improved by 120 basis points year-over-year to 34.3% [4]. - Adjusted operating margin expanded by 110 basis points year-over-year to 22.4% [4]. - Selling, general and administrative expenses as a percentage of revenues increased by 10 basis points year-over-year to 11.9% [4]. Balance Sheet and Cash Flow - As of December 31, 2024, Amphenol had cash and cash equivalents of $3.34 billion, up from$1.58 billion as of September 30, 2024 [5]. - Total debt increased to $6.89 billion from$5.48 billion during the same period [5]. - The company repurchased 2.4 million shares for $169 million and paid dividends totaling$199 million [5]. Future Guidance - For Q1 2025, Amphenol expects earnings between 49 cents and 51 cents per share, indicating year-over-year growth of 23% to 28% [6]. - Revenue guidance for Q1 2025 is projected between $4 billion and$4.10 billion, suggesting growth in the range of 23% to 26% [6]. Market Sentiment - There has been an upward trend in estimates revisions, with the consensus estimate shifting by 10.64% recently [7]. - Amphenol currently holds a Zacks Rank 1 (Strong Buy), indicating positive market sentiment and expectations for above-average returns in the coming months [9].