Amphenol (APH) to Report Q3 Earnings: What's in the Cards?
Amphenol APH is set to report its third-quarter 2023 results on Oct 25.
It expects third-quarter 2023 earnings between 72 cents and 74 cents per share, indicating a decline between 8% and 10% year over year. Revenues are anticipated between $3.040 billion and $3.1 billion.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $3.08 billion, indicating a decline of 6.53% from the figure reported in the year-ago quarter.
The consensus mark for earnings has remained at 74 cents per share over the past 30 days, suggesting a 7.5% 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 5.28%.
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 third-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 second-quarter 2023 revenues. Our model estimate for third-quarter Communications Solutions revenues is pegged at $986.7 million, indicating a year-over-year decline of 35%.
The company’s other two segments — Harsh Environment Solutions and Interconnect and Sensor Systems — contributed 27% and 33.4%, respectively, to second-quarter revenues.
Harsh Environment Solutions revenues are estimated to decline 24.7% year over year to $597.3 million for the third quarter, per our model. Interconnect and Sensor Systems are estimated to increase 51.4% year over year.
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 third-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 #2. 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:
GoDaddy GDDY has an Earnings ESP of +14.09% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
GoDaddy shares have gained 0.9% year to date. GDDY is set to report its third-quarter 2023 results on Nov 2.
Pinterest PINS has an Earnings ESP of +4.76% and a Zacks Rank #1.
Pinterest shares have gained 9.3% year to date. PINS is set to report its third-quarter 2023 results on Oct 30.
Meta Platforms META has an Earnings ESP of +3.98% and has a Zacks Rank of 3 at present.
Meta shares have gained 159.9% year to date. META is set to report its third-quarter 2023 results on Oct 25.
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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