Amphenol Surpasses Earnings Estimates, But Future Outlook Raises Questions
Amphenol (APH) reported quarterly earnings of $0.50 per share, exceeding the Zacks Consensus Estimate of $0.45 per share. This marks an increase from last year’s earnings of $0.39 per share, with adjustments made for non-recurring items.
This quarterly performance reflects an earnings surprise of 11.11%. In the previous quarter, Amphenol was projected to earn $0.41 per share but actually posted $0.43, resulting in a surprise of 4.88%.
Over the last four quarters, the company has consistently surpassed consensus EPS estimates. Amphenol, operating within the Zacks Electronics – Connectors industry, recorded revenues of $4.04 billion for the quarter ending in September 2024. This figure outperformed the Zacks Consensus Estimate by 7.11% and significantly increased from year-ago revenues of $3.2 billion. Similarly, Amphenol has met or beaten consensus revenue estimates four times in the past year.
Looking ahead, the sustainability of Amphenol’s stock price movements will largely depend on management’s insights during the upcoming earnings call.
Year-to-date, Amphenol shares have risen approximately 34.9%, outperforming the S&P 500’s gain of 22.7%.
Future Prospects for Amphenol
Despite strong year-to-date performance, investors are rightly asking: what’s next for Amphenol’s stock?
There are no straightforward answers, but understanding the company’s earnings outlook can provide valuable insights. This outlook includes not only current consensus earnings expectations for upcoming quarters but also recent changes to these expectations.
Research indicates a strong connection between short-term stock movements and trends in earnings estimate revisions. Investors can monitor these revisions independently or use established rating tools like the Zacks Rank, which has a reputation for effectively utilizing earnings estimate changes.
Prior to the latest earnings release, the trend for Amphenol’s estimate revisions was unfavorable. While this could shift following the latest report, it currently reflects a Zacks Rank of #4 (Sell), suggesting the shares may underperform the market in the near term.
As this situation evolves, it will be interesting to observe how estimates for future quarters and the current fiscal year adjust. Presently, the consensus EPS estimate for the upcoming quarter is $0.46 on revenues of $3.89 billion, while the EPS estimate for the current fiscal year stands at $1.76 on $14.53 billion in revenues.
The overall industry outlook will also significantly influence Amphenol’s stock performance. Currently, the Zacks Industry Rank places Electronics – Connectors in the bottom 6% of over 250 Zacks industries. Historical data shows that the top half of Zacks-ranked industries outperform the bottom half by more than two-to-one.
In related news, Meta Platforms (META) is set to report its results for the quarter ending September 2024 on October 30. Analysts predict quarterly earnings of $5.17 per share, reflecting a year-over-year increase of 17.8%, with revenue expectations at $40.16 billion, up 17.6% from the same quarter last year.
Should You Consider Investing in Amphenol Corporation?
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