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Amphenol (APH) to Report Q1 Earnings: What's in the Cards?

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Amphenol (APH - Free Report) is set to report first-quarter 2021 results on Apr 28.

Amphenol expects first-quarter earnings between 45 cents and 47 cents per share after adjusting for 2:1 split on Mar 5.

Revenues are anticipated between $2.120 and $2.180 billion, representing 14-17% year-over-year growth.

The Zacks Consensus Estimate for first-quarter revenues is pegged at $2.17 billion, implying growth of 16.6% from the figure reported in the year-ago quarter.

Moreover, the consensus mark for earnings has increased 6.8% to 47 cents per share over the past 30 days, suggesting 30.6% growth from the figure reported in the year-ago quarter.

Amphenol Corporation Price and EPS Surprise

 

Amphenol Corporation Price and EPS Surprise

Amphenol Corporation price-eps-surprise | Amphenol Corporation Quote

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 14%.

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, contributions from acquisitions like Onanon, Cablescan, XGiga and EXA Thermometrics are expected to have aided first-quarter results.

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

Amphenol’s first-quarter 2021 top line is expected to have benefited from higher sales to an improved automotive end-market. Further, strong mobile network sales driven by investments in next-generation mobile networks are expected to have benefited Amphenol’s first-quarter results.

Further, Information Technology and Data Communications sales are expected to have benefited from increased demand for Amphenol’s solutions required to accelerate bandwidth capacity expansions in order to support ongoing work-from-home and online-learning waves.

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

Additionally, Mobile devices’ sales are expected to have decreased due to seasonality.

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 +1.20% and a Zacks Rank #3. 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:

Etsy (ETSY - Free Report) has an Earnings ESP of +5.02% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CDW Corporation (CDW - Free Report) has an Earnings ESP of +0.49% and a Zacks Rank #2.

Citrix Systems (CTXS - Free Report) has an Earnings ESP of +0.15% and a Zacks Rank #2.

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