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Amphenol (APH) to Report Q2 Earnings: What's in the Cards?

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Amphenol (APH - Free Report) is set to report its second-quarter 2024 results on Jul 24.

It expects second-quarter 2024 earnings between 79 cents and 81 cents per share, indicating growth between 10% and 13% year over year. Revenues are anticipated between $3.24 billion and $3.30 billion. 

The Zacks Consensus Estimate for second-quarter revenues is pegged at $3.34 billion, indicating an increase of 9.42% from the figure reported in the year-ago quarter.

The consensus mark for earnings has been steady at 41 cents per share in the past 30 days, suggesting 13.89% growth from the figure reported in the year-ago quarter.

Amphenol Corporation Price and EPS Surprise

 

Amphenol Corporation Price and EPS Surprise

Amphenol Corporation price-eps-surprise | Amphenol Corporation Quote

 

Amphenol’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 6.87%.

Let’s see how things have shaped up for the upcoming announcement:

Factors to Note

Amphenol’s diversified business model lowers the risks posed by the volatility of individual end markets and geographies. This is expected to have been a tailwind for the company in the to-be-reported quarter.

Continued strength in the Information Technology and Data Communications market, driven by accelerating demand for AI-related interconnect products, is expected to have aided its second-quarter results. This market generated 21% of APH’s sales in first-quarter 2024 and experienced significant growth.

The strong demand for AI-related interconnect products is expected to have driven growth in the IT and Data Communications market.

Strong momentum in the defense, commercial aerospace and automotive end-markets is likely to have boosted the top line during the second quarter.

Acquisitions have expanded its high technology and value-added interconnect product offerings to end markets, including defense, commercial aerospace and industrial product offerings. Top-line growth is expected to be reflected positively by this trend.

Strong contributions from the acquisitions, including Carlisle Interconnect Technologies (CIT) Business, TPC Wire & Cable, Airmar Technology and LID Technologies, are expected to have aided its second-quarter results.

However, a challenging short-term wireless investment environment and weakness in spending by network operators and wireless equipment manufacturers are expected to have hurt APH’s top-line growth in the to-be-reported quarter.

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 exact 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 some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Arista Networks (ANET - Free Report) has an Earnings ESP of +0.95% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.

Arista Networks’ shares have gained 41.9% year to date. ANET is set to report its second-quarter 2024 results on Jul 30.

Apple (AAPL - Free Report) has an Earnings ESP of +3.23% and a Zacks Rank of #2 at present.

Apple shares have gained 16.4% year to date. AAPL is set to report its third-quarter fiscal 2024 results on Aug 1.

Cognizant Technology Solutions (CTSH - Free Report) has an Earnings ESP of +0.09% and a Zacks Rank #3.

Cognizant Technology Solutions shares have gained 0.6% year to date. CTSH is set to report its second-quarter 2024 results on Jul 31.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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