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Amphenol (APH) to Report Q2 Earnings: What's in the Cards?

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

Amphenol expects second-quarter 2021 earnings between 53 cents and 55 cents per share, indicating 33% to 38% year-over-year growth. Revenues are anticipated to be $2.415-$2.475 billion, indicating 22-25% year-over-year growth.

The Zacks Consensus Estimate for second-quarter revenues is pegged at $2.47 billion, implying growth of 24.1% from the figure reported in the year-ago quarter.

The consensus mark for earnings has stayed at 55 cents per share over the past 30 days, suggesting 34.2% growth from the figure reported in the year-ago quarter.

Amphenol’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, delivering an earnings surprise of 18.3%, on average.
 

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, contributions from acquisitions of Euromicron, Cabelcon, MTS Systems, Onanon, Cablescan, XGiga and EXA Thermometrics are expected to have aided second-quarter results.

Military market sales are expected to have increased sequentially due to the addition of MTS sensors to the product offering, as well as strong demand for interconnect products. 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.

Addition of MTS sensors like position, vibration, force and shock in the portfolio is also expected to have increased industrial end-market sales.

Strong mobile network sales, driven by investments in next-generation mobile networks and the acquisition of Euromicron, are expected to have benefited Amphenol’s second-quarter results.

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.

The Cabelcon buyout is expected to have aided broadband end-market top-line growth.

However, Amphenol’s second-quarter 2021 top line is expected to have suffered from supply chain disruptions in the improved automotive end market.

Commercial aerospace is expected to have remained subdued due to pandemic-induced reduction in demand for new aircraft and restrictions on traveling. 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 +0.43% 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:

CyberArk Software (CYBR - Free Report) has an Earnings ESP of +37.93% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Bruker (BRKR - Free Report) has an Earnings ESP of +2.50% and a Zacks Rank #2.

Carrier Global (CARR - Free Report) has an Earnings ESP of +1.45% and a Zacks Rank #2.