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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 2021 results on Oct 27.

Amphenol expects third-quarter 2021 earnings between 60 cents and 62 cents per share, indicating 9% to 13% year-over-year growth. Revenues are anticipated to be $2.640-$2.700 billion, indicating 14-16% year-over-year growth.

The Zacks Consensus Estimate for third-quarter revenues is pegged at $2.70 billion, implying growth of 16.4% from the figure reported in the year-ago quarter.

The consensus mark for earnings has stayed at 63 cents per share over the past 30 days, suggesting 14.6% 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


Amphenol’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, the average surprise being 14.4%.

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. Contributions from acquisitions of Unlimited Services, Euromicron, Cabelcon, MTS Systems, Onanon, Cablescan, XGiga and EXA Thermometrics are expected to have aided third-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.

The addition of MTS sensors like position, vibration, force and shock in the portfolio is also expected to have increased industrial end-market sales. Acquisition of Unlimited Services has further strengthened Amphenol’s position in this market.

Strong mobile network sales, driven by investments in next-generation mobile networks and the acquisition of Euromicron, are expected to have benefited Amphenol’s third-quarter results. Additionally, Mobile devices’ sales are expected to have benefited from the launch of new devices.

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.

Amphenol’s third-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.

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 +1.02% 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:

Alphabet (GOOGL - Free Report) has an Earnings ESP of +7.71% and is Zacks #2 Ranked. You can see the complete list of today’s Zacks #1 Rank stocks here.

CACI International (CACI - Free Report) has an Earnings ESP of +4.43% and carries a Zacks Rank of 2, at present.

Apple (AAPL - Free Report) has an Earnings ESP of +5.69% and carries a Zacks Rank of 3, at present.