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.