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What's in Store for Amphenol (APH) This Earnings Season?

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Amphenol Corporation (APH - Free Report) is set to report second-quarter 2018 results on Jul 25.

In the trailing four quarters, the company delivered an average positive earnings surprise of 8.45%, beating estimates in each quarter. In the last reported quarter, the company’s adjusted earnings surpassed the Zacks Consensus Estimate by 3 cents.

Notably, Amphenol’s top line also outpaced the consensus mark in the trailing four quarters. In the last reported quarter, revenues came in at $1.867 billion, beating the Zacks Consensus Estimate of $1.804 billion and increasing 19.7% from the year-ago quarter.

Management anticipates second-quarter 2018 revenues between $1.855 billion and $1.895 billion, while adjusted earnings are expected between 83 cents and 85 cents per share.

Let’s see how things are shaping up prior to this announcement.

Acquisitions & Diversifications Bode Well

Amphenol remains confident about strong organic and inorganic growth across most of its end markets, in particular, mobile devices, military, industrial, automotive, and commercial air. Additionally, improved end-market demand, new product rollouts and market share gains remain positives

The company’s acquisition of Canada-based CTI Industries that manufactures high technology cable assemblies diversifies Amphenol’s interconnect product portfolio bodes well for industrial market top-line growth. Moreover, the acquisition of China-based Sunpool, a provider of high technology antennas for the Chinese automotive market, has solidified the company’s market position.

Additionally, continuing focus on geographic and market diversification has enabled Amphenol to extend its reach to new customers and new applications.

Furthermore, Amphenol remains encouraged by expanding presence in the fast-growing commercial aerospace market. The company is well positioned to capitalize on the proliferation of electronics content in next-generation planes. These advanced electronic systems require advanced technology interconnect solutions to enhance fuel efficiency and improve passenger experience, all of which create excellent opportunities for the company.

Amphenol Corporation Price and EPS Surprise

Amphenol Corporation Price and EPS Surprise | Amphenol Corporation Quote  
 

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has a good chance of beating estimates. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.

Amphenol has a Zacks Rank #3 and an Earnings ESP of +0.39%, which indicates a likely positive surprise. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to Consider

Here are a few stocks you may also consider as our proven model shows that these have the right combination of elements to post an earnings beat this quarter.

Twitter has an Earnings ESP of +7.06% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Agilent Technologies (A - Free Report) has an Earnings ESP of +0.88% and a Zacks Rank #3.

Applied Materials (AMAT - Free Report) has an Earnings ESP of +0.95% and a Zacks Rank #3.

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