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Amphenol (APH) to Report Q3 Earnings: What's in the Cards?

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Amphenol (APH - Free Report) is set to report third-quarter 2020 results on Oct 21.

Amphenol expects third-quarter earnings between 84 and 86 cents per share. Net sales are expected between $1.960 and $2 billion.

The Zacks Consensus Estimate for third-quarter revenues is pegged at $2.01 billion, implying a decline of 4.4% from the figure reported in the year-ago quarter.

Moreover, the consensus mark for earnings has stayed at 86 cents per share over the past 30 days, implying 9.5% decline from the figure reported in the year-ago quarter.

Notably, Amphenol’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing in the remaining one, the average surprise being 9.2%.

Let’s see how things have shaped up for the upcoming announcement.

Factors to Consider

Amphenol’s diversified business model lowers the volatility of individual-end markets and geographies. Moreover, acquisitions like Onanon, Cablescan, XGiga and EXA Thermometrics are expected to have aided third-quarter results.

Amphenol’s third-quarter 2020 top line is expected to have benefited from higher sales to an improved automotive end-market. Per The Wall Street Journal, the U.S. automotive industry showed signs of recovery from coronavirus-led disruptions, driven by strong demand for trucks and sport-utility vehicles. Notably, the automotive market accounted for 11% of the company’s second-quarter net sales.

Moreover, IT and data communications sales are expected to have benefited from a surge in orders for cloud computing and data centers, as well as gaming systems. Industrial segment is also expected to have benefited from strong demand for coronavirus-related medical equipment. This is expected to have negated weakness in oil & gas, heavy equipment, and rail-mass transit.

Mobile devices’ sales are also expected to have increased in the to-be-reported quarter.

However, weak military, commercial aerospace and mobile networks sales are expected to have hurt Amphenol’s third-quarter results.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.

Amphenol has an Earnings ESP of +0.83% and a Zacks Rank #2. 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 other companies you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat in their upcoming releases:

Avnet (AVT - Free Report) has an Earnings ESP of +39.13% and a Zacks Rank #1.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Limelight Networks has an Earnings ESP of +61.54% and a Zacks Rank #2.

MSCI (MSCI - Free Report) has an Earnings ESP of +0.83% and a Zacks Rank #2.

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