Amphenol beats fourth-quarter earnings estimates on strong defense demand
Jan 24 (Reuters) - Amphenol beat revenue expectations for the fourth quarter on Wednesday riding on strong demand for its electronic components, used by the military and the automobiles sector, sending its shares up 3% in early trading.
The electronics equipment maker's cables and connectors are seeing increasing demand as countries across the world expand their investments in defense technology, amid the conflict in the Middle East and the Russia-Ukraine war. The transition to electric vehicles has also boosted demand.
The Connecticut-based firm posted revenue of $3.33 billion for the three months ended Dec. 31, compared with an estimate of $3.15 billion, according to LSEG data. Its fourth-quarter adjusted earnings of 82 cents per share also beat the estimated 77 cents.
But its communications solutions unit has been grappling with softer demand for its equipment used in broadband and information technology. The business saw a decline of nearly 6% in fourth-quarter net sales, to $1.35 billion, from $1.44 billion in the same quarter last year.
It also weighed on Amphenol's overall current-quarter sales forecast, which was below estimates.
The company said its overall sales would be between $3.04 billion and $3.10 billion in the first quarter of 2024, compared with an estimate of $3.12 billion.
It forecast adjusted earnings between 71 cents and 73 cents per share for the 2024 first quarter, in line with an estimate of 72 cents per share. (Reporting by Priyanka.G in Bengaluru; Editing by Pooja Desai)
