Amphenol Corporation (APH) delivered a strong performance in its fiscal third quarter, exceeding both revenue and earnings expectations, sending its shares soaring. The company reported a 26% year-on-year increase in sales, reaching $4.04 billion, surpassing the analyst consensus estimate of $3.80 billion. Adjusted earnings per share (EPS) also came in above expectations at 50 cents, beating the analyst consensus of 45 cents.
This impressive performance was fueled by robust organic growth across several key markets, including IT datacom, mobile networks, mobile devices, commercial air, and defense. The company’s acquisition program also contributed to the positive results.
Amphenol’s CEO, R. Adam Norwitt, highlighted the company’s strong profitability, stating, “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%.”
Looking ahead, Amphenol anticipates strong continued growth. The company forecasts fourth-quarter sales of $3.95 billion to $4.05 billion, representing a 19% to 22% increase year-over-year. The street view expects sales to reach $3.80 billion. For adjusted EPS, Amphenol projects a range of $0.48 to $0.50, indicating a 17% to 22% year-over-year increase, exceeding the analyst consensus estimate of $0.45.
Following the strong earnings announcement, several analysts adjusted their price targets on Amphenol stock. Baird analyst Luke Junk maintained his Outperform rating while raising the price target from $71 to $77. Meanwhile, B of A Securities analyst Wamsi Mohan kept his Neutral rating but raised the price target from $70 to $74.
With Amphenol delivering strong results and analysts expressing positive sentiments, the company appears well-positioned for continued growth in the coming quarters. Investors seeking exposure to the technology sector might find Amphenol’s strong performance and future prospects attractive.
