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

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Amphenol Corporation (APH - Free Report) is set to report fourth-quarter 2018 results on Jan 23.

Notably, the company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, delivering average positive surprise of 5.3%.

In the last reported quarter, the company’s earnings of 99 cents per share surpassed the Zacks Consensus Estimate of 94 cents. The figure increased 19.3% year over year.

Net sales increased 15.7% year over year to $2.13 billion, which comfortably surpassed the Zacks Consensus Estimate of $2.01 billion.

For the fourth quarter of 2018, Amphenol projects sales between $2.06 billion and $2.10 billion. Adjusted earnings are expected between 96 cents and 98 cents per share.

The Zacks Consensus Estimate of 98 cents has remained unchanged over the past 30 days. Further, the consensus mark for revenues is $2.10 billion, up 7.8% year over year.
 

 

Let’s see how things are shaping up prior to this announcement.

Factors to Watch Out

Amphenol is benefiting from strong organic growth across most of its end markets, including mobile devices, military, IT and data communications, mobile networks, commercial air, industrial, and automotive.

Additionally, strong defense spending environment, which is having a positive impact on the military end market, is expected to boost Amphenol’s top-line growth.

Moreover, the company expects commercial aerospace, industrial, Information technology & data communications, and mobile devices end-market sales to grow modestly in the fourth quarter.

Amphenol’s strong product portfolio, particularly for the Information technology & data communications end market, is expected to drive top-line growth.

However, mobile networks and broadband communications end-market sales are expected to decline. Further, sluggish demand is likely to hurt automotive end-market sales.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) along with a positive Earnings ESP has a good chance of beating estimates. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.

Amphenol has a Zacks Rank #1 and an Earnings ESP of 0.00%. 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 earnings beat in their upcoming releases:

SS&C Technologies Holdings (SSNC - Free Report) has an Earnings ESP of +1.18% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Cloudera (CLDR - Free Report) has a Zacks Rank #1 and an Earnings ESP of +30%.

Grubhub (GRUB - Free Report) has a Zacks Rank #2 and an Earnings ESP of +21.07%.

 

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