Amphenol, the Connecticut-based manufacturer of fiber optic connectors, announced its financial results for the third quarter. Despite a decline in sales, the company’s profit saw an increase as a result of reduced costs and lower income tax provisions.
Strong Profit Growth
Amphenol reported a net income of $513.9 million for the quarter, surpassing the $496.6 million recorded in the same period last year. This translated to earnings per share of 83 cents, up from 80 cents in the previous year. Adjusted earnings per share, however, experienced a slight decline of 3% to 78 cents.
Decline in Sales
While profit showed growth, the company’s revenue experienced a dip, reaching $3.2 billion compared to $3.3 billion in the previous year’s third quarter. However, Amphenol successfully reduced its cost of sales to $2.15 billion from $2.24 billion.
Lower Provision for Income Taxes
Amphenol also made significant progress in managing its tax provisions. The company reduced its provision for income taxes to $115.2 million, down from $150.4 million in the same quarter of 2022.
Surpassing Market Expectations
Amphenol’s third-quarter performance exceeded market expectations, with FactSet’s market consensus predicting revenue of $3.1 billion and net income of $455 million.
Amphenol has demonstrated its ability to navigate challenges and maintain profitability despite the decline in sales. As the company continues to innovate and adapt to changing market conditions, it remains a leading player in the fiber optic connector industry.