U.S. Markets open in 3 hrs 58 mins

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

Zacks Equity Research

Amphenol APH is set to report fourth-quarter 2019 results on Jan 22.

The company expects fourth-quarter sales between $1.960 billion and $2 billion. Adjusted earnings are expected between 89 cents and 91 cents per share.

The Zacks Consensus Estimate for revenues is pegged at $1.99 billion, implying a decline of 10.6% from the figure reported in the year-ago quarter.

Moreover, the consensus mark for earnings stayed at 91 cents per share over the past 30 days, implying a 13.3% decline from the figure reported in the year-ago quarter.

Notably, Amphenol’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, the average positive surprise being 4.1%.
 

Amphenol Corporation Price and EPS Surprise

Amphenol Corporation Price and EPS Surprise

Amphenol Corporation price-eps-surprise | Amphenol Corporation Quote

 

Modest Sales Growth Across Most End Markets

Amphenol expects fourth-quarter sales growth to be modest in the military, commercial aerospace, mobile devices, and Information technology and data communications end markets.

However, sales are expected to decline in automotive and mobile networks end markets.

Further, slowing demand in Europe is expected to hurt fourth-quarter sales in the industrial end market.

Other Factors to Consider

Amphenol’s diversified end market lowers exposure to volatility in any industry. Moreover, the company’s strong portfolio, driven by buyouts of CONEC, Kopek, Bernd Richter, GJM Group, CTI, Ardent, All Sensors, SSI Controls, Aorora and Charles Industries, is expected to have aided the to-be-reported quarterly results.

However, the uncertain macroeconomic environment due to the U.S.-China trade war and the sluggish automotive market in Europe and Asia is likely to get reflected in the company’s top-line performance in the to-be-reported quarter.

This along with unfavorable foreign exchange is expected to have hurt the top line.

Further, a slowing China economy is a concern. Notably, China’s economy grew 6% in the fourth quarter, according to the National Bureau of Statistics, slowest pace since the first quarter of 1992, per data from Reuters, cited by CNBC.

What Our Model Says

According to the Zacks model, a company with a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates. But that is not the case here.

Amphenol has an Earnings ESP of 0.00% and 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 other companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:

Apple AAPL has an Earnings ESP of +4.08% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

MKS Instruments MKSI has an Earnings ESP of +8.41% and a Zacks Rank #1.

Perion Network PERI has an Earnings ESP of +22.58% and a Zacks Rank #1.

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”

Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.6% per year. So be sure to give these hand-picked 7 your immediate attention.

See 7 handpicked stocks now >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
MKS Instruments, Inc. (MKSI) : Free Stock Analysis Report
 
Perion Network Ltd (PERI) : Free Stock Analysis Report
 
Apple Inc. (AAPL) : Free Stock Analysis Report
 
Amphenol Corporation (APH) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research