Amphenol Corporation Surges Ahead with Impressive Earnings
Market Performance Highlights
Wallingford, Connecticut-based Amphenol Corporation (APH) specializes in designing, manufacturing, and marketing electrical, electronic, and fiber optic connectors across the U.S., China, and globally. With a market cap of $88.5 billion, the company operates through various segments, including Harsh Environment Solutions, Communications Solutions, and Interconnect and Sensor Systems.
Over the past year, Amphenol has significantly outperformed the broader market. As of now, APH stock has risen 48.1% year-to-date and 69.5% over the last year, while the S&P 500 Index ($SPX) has seen gains of only 25.8% in 2024 and 35.9% over the last 12 months.
Solid Growth Against Benchmarks
Drilling down further, APH has outshone the Technology Select Sector SPDR Fund’s (XLK) 22.5% gains this year and 31.4% gains over the past year.
Following its robust Q3 earnings report on October 23, Amphenol’s stock price gained 2.4%. The company reported strong demand across various sectors, including IT datacom, mobile networks, mobile devices, and defense, which contributed to a remarkable 15% year-over-year increase in organic sales. Overall, after including acquisitions, net sales soared by 26.2% year-over-year to $4 billion, surpassing Wall Street’s expectations by 7.1%.
In terms of profitability, Amphenol’s adjusted earnings per share (EPS) rose by 28.2% year-over-year to $0.50, exceeding analyst expectations by 11.1%.
Future Earnings Expectations
Looking ahead to the current fiscal year, which ends in December, analysts predict a strong 22.7% year-over-year growth in adjusted EPS to $1.84. Furthermore, Amphenol has a strong track record of beating earnings estimates, having surpassed analysts’ expectations in every quarter for the last year.
As for ratings, APH stock holds a consensus “Moderate Buy” designation. Out of the 15 analysts following the stock, 10 recommend a “Strong Buy,” while five suggest a “Hold” rating.
This outlook is less positive compared to three months ago, when the overall consensus among 15 analysts was a “Strong Buy.” At that time, 11 analysts had given a “Strong Buy” recommendation.
On October 26, TD Cowen analyst Joseph Giordano upheld a “Hold” rating on APH while increasing the price target to $63.
The average price target for APH now stands at $76.93, offering a 4.8% upside from the current price. The highest target of $87 implies a potential increase of 18.5%.
More Stock Market News from Barchart
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are solely for informational purposes. For additional information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
