Amphenol Forecasts Strong Q4 Growth Driven by AI and Defense Demand

Amphenol forecasts upbeat Q4 sales, profit on strong demand for electronic equipment

Oct 23 (Reuters) - Amphenol (APH.N), opens new tab projected fourth-quarter sales and profit above Wall Street estimates on Wednesday, boosted by strong demand for its sensors and connectors in the IT, data communications and defense sectors. Shares of the electronic equipment maker, which also comfortably beat third-quarter estimates, rose more than 5% in early trading. Amphenol benefited from increased spending in the information technology industry, powered by the AI boom, as its fiber optic technologies are used in cloud computing, data centers, gaming systems and networking equipment. Advertisement · Scroll to continue Additionally, worldwide geopolitical tensions have caused an uptick in defense spending by countries, driving demand for Amphenol's equipment used in defense systems including engines, ground vehicles, tanks and radar systems. Last year, the defense sector made up about 11% of Amphenol's total sales, while the IT and data communications market represented roughly 19%. Wallingford, Connecticut-based Amphenol expects fourth-quarter sales to jump 19% to 22% or between $3.95 billion and $4.05 billion, while analysts polled by LSEG expect revenue of $3.94 billion. Advertisement · Scroll to continue The company projected adjusted earnings of 48 cents to 50 cents per share, above estimates of 47 cents per share. Amphenol reported an adjusted profit of 50 cents per share in the third quarter ending on Sept. 30, beating expectations of 45 cents per share. It reported a 26% jump in sales to $4.04 billion, while analysts estimated $3.80 billion. Reporting by Deborah Sophia in Bengaluru; Editing by Vijay Kishore Our Standards: The Thomson Reuters Trust Principles., opens new tab

Amphenol Forecasts Upbeat Q4 Sales, Profit on Strong Demand for Electronic Equipment

(Reuters) - Amphenol projected fourth-quarter sales and profit above Wall Street estimates on Wednesday, boosted by strong demand for its sensors and connectors in the IT, data communications and defense sectors. Shares of the electronic equipment maker, which also comfortably beat third-quarter estimates, rose more than 5% in early trading. Amphenol benefited from increased spending in the information technology industry, powered by the AI boom, as its fiber optic technologies are used in cloud computing, data centers, gaming systems and networking equipment. Additionally, worldwide geopolitical tensions have caused an uptick in defense spending by countries, driving demand for Amphenol's equipment used in defense systems including engines, ground vehicles, tanks and radar systems. Last year, the defense sector made up about 11% of Amphenol's total sales, while the IT and data communications market represented roughly 19%. Wallingford, Connecticut-based Amphenol expects fourth-quarter sales to jump 19% to 22% or between $3.95 billion and $4.05 billion, while analysts polled by LSEG expect revenue of $3.94 billion. The company projected adjusted earnings of 48 cents to 50 cents per share, above estimates of 47 cents per share. Amphenol reported an adjusted profit of 50 cents per share in the third quarter ending on Sept. 30, beating expectations of 45 cents per share. It reported a 26% jump in sales to $4.04 billion, while analysts estimated $3.80 billion. (Reporting by Deborah Sophia in Bengaluru; Editing by Vijay Kishore)

Amphenol CEO Credits 26% Sales Boost To IT, Mobile Networks, Acquisitions: 'We Again Realized Strong Profitability' - Amphenol (NYSE:APH)

Amphenol expects strong Q4 growth with sales forecasted at $3.95B-$4.05B and adjusted EPS up 17%-22% year-over-year. Electronic and fiber optic connector company Amphenol Corporation APH reported a fiscal third-quarter 2024 sales increase of 26% year-on-year to $4.04 billion, beating the analyst consensus estimate of $3.80 billion. Adjusted EPS of 50 cents topped the analyst consensus estimate of 45 cents. The adjusted operating margin for the quarter was 21.9% versus 20.8% a year ago. Also Read: Amphenol Downgraded: Analyst Cites NVIDIA Design Changes As Risk To AI Revenue Growth Amphenol held $1.58 billion in cash and equivalents as of Sept.30. CEO R. Adam Norwitt: "Sales increased from prior year by 26%, driven by robust organic growth in the IT datacom, mobile networks, mobile devices, commercial air and defense markets, as well as contributions from the Company's acquisition program. During the quarter, we again realized strong profitability with Adjusted Operating Margin reaching a record 21.9%." Outlook: Amphenol expects fourth-quarter sales of $3.95 billion-$4.05 billion. This represents a 19%-22% increase over the prior-year quarter, and the street view pegs expectations at $3.80 billion. The company sees adjusted EPS of $0.48-$0.50, representing a 17%-22% increase Y/Y. The analyst consensus stands at $0.45. Amphenol expects fiscal 2024 sales of $14.85 billion-$14.95 billion, representing an 18%-19% increase over the prior year versus a consensus of $14.62 billion. It expects fiscal 2024 adjusted EPS of $1.82-$1.84, representing a 21%-22%, versus a consensus of $1.76. Price Action: APH stock is up 2.47% at $68.50 premarket at the last check Wednesday. Also Read: AT&T Q3 Earnings: Strong Postpaid Phone Adds, Adj. EBITDA Growth, $4.4B Impairment Charge And More Market News and Data brought to you by Benzinga APIs