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Amphenol forecasts upbeat Q4 sales, profit on strong demand for electronic equipment
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Amphenol forecasts upbeat Q4 sales, profit on strong demand for electronic equipment
Oct 23, 2024 7:19 AM

Oct 23 (Reuters) - Amphenol ( APH ) 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 ( APH ) 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 ( APH ) 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 ( APH ) total sales, while the IT and data communications

market represented roughly 19%.

Wallingford, Connecticut-based Amphenol ( APH ) 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 ( APH ) 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.

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