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Amphenol (APH) to Report Q4 Earnings: What's in the Cards?

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Amphenol (APH - Free Report) is set to report fourth-quarter 2020 results on Jan 27.

Amphenol expects fourth-quarter earnings between 98 cents and $1 per share. Revenues are anticipated between $2.160 billion and $2.200 billion.

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $2.19 billion, implying  growth of 1.9% from the figure reported in the year-ago quarter.

Moreover, the consensus mark for earnings has stayed at $1.01 per share over the past 30 days, implying 3.1% growth 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 13.2%.
 

Amphenol Corporation Price and EPS Surprise

 

Amphenol Corporation Price and EPS Surprise

Amphenol Corporation price-eps-surprise | Amphenol Corporation Quote

 

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 fourth-quarter results.

Military market sales are expected to have increased sequentially. Accelerating adoption of electronics in defense equipment systems and overall favorable defense spending environment are a couple of trends benefiting Amphenol in the past few quarters. These are expected to have continued in the to-be-reported quarter.

Amphenol’s fourth-quarter 2020 top line is expected to have benefited from higher sales to an improved automotive end-market. Mobile devices’ sales are also expected to have increased, driven by strong demand for antennas, interconnect products and mechanisms.

However, commercial aerospace is expected to have remained subdued due to pandemic-induced reduction in demand for new aircraft. Industrial market sales are also expected to decline sequentially.

Further, weak mobile network sales are expected to have hurt Amphenol’s fourth-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. But that’s not the case here.

Amphenol has an Earnings ESP of +0.00% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:

Littelfuse (LFUS - Free Report) has an Earnings ESP of +1.14% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Snap (SNAP - Free Report) has an Earnings ESP of +6.06% and a Zacks Rank #2.

MSCI (MSCI - Free Report) has an Earnings ESP of +0.28% and a Zacks Rank #2.

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