Amphenol (APH) to Report Q2 Earnings: What's in the Cards?
Amphenol APH is set to report its second-quarter 2023 results on Jul 26.
Amphenol expects second-quarter 2023 earnings between 66 cents and 68 cents per share, indicating a decline between 9% and 12% year over year. Revenues are anticipated between $2.890 billion and $2.950 billion, suggesting a year-over-year decline of 6-8%.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $2.93 billion, indicating a fall of 6.69% from the figure reported in the year-ago quarter.
The consensus mark for earnings has remained at 67 cents per share over the past 30 days, suggesting a 10.67% decline from the figure reported in the year-ago quarter.
Amphenol’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 6.4%.
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 second-quarter top-line growth is expected to have suffered from reduced demand in the communications market. The top line is expected to reflect excess inventory pile-up in the IT datacom market, which has hurt demand. Moreover, cautious spending by service providers is likely to have hurt mobile networks market growth in the to-be-reported quarter.
Communications Solutions accounted for 37.9% of Amphenol’s first-quarter 2023 revenues. Our model estimate for second-quarter Communications Solutions revenues is pegged at $1.26 billion, indicating a year-over-year decline of 8.6%.
The company’s other two segments — Harsh Environment Solutions and Interconnect and Sensor Systems — contributed 28.7% and 33.4%, respectively, to first-quarter revenues.
Harsh Environment Solutions revenues are estimated to decline 5% year over year to $750.6 million in the second quarter, per our model. Interconnect and Sensor Systems are estimated to decline 5.3% year over year.
Nevertheless, Amphenol’s diversified business model lowers the risks posed by the volatility of individual end markets and geographies.
Contributions from the acquisitions of Control Measure Regulation Group, Integrated Cable Assembly Holdings, NPI Solutions, MTS Sensors, Halo, Positronic, El-Cab, Unlimited Services, Cablecon and Euromicron are expected to have aided its second-quarter results.
Moreover, acquisitions have expanded its high technology and value-added interconnect product offerings in the diversified industrial market.
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 carries a Zacks Rank #4 (Sell). 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 worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Tyler Technologies TYL has an Earnings ESP of +0.54% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tyler shares have gained 24.3% year to date. TYL is set to report its second-quarter 2023 results on Jul 27.
Cadence Design Systems CDNS has an Earnings ESP of +3.55% and a Zacks Rank #1.
Cadence Design shares have gained 49.5% year to date. CDNS is set to report its second-quarter 2023 results on Jul 24.
Meta Platforms META has an Earnings ESP of +5.83% and has a Zacks Rank of 2, at present.
Meta shares have gained 143.2% year to date. META is set to report its second-quarter 2023 results on Jul 26.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Amphenol Corporation (APH) : Free Stock Analysis Report
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