Back to top

Image: Bigstock

APH Q1 Earnings Gain From Communications Sales: Time to Buy or Hold?

Read MoreHide Full Article

Amphenol’s (APH - Free Report) first-quarter 2025 Communications Solutions sales of $2.41 billion beat the Zacks Consensus Estimate by 33.3%. Communications Solutions' sales surged 90.7% year over year, which accounted for 50.2% of net sales in the reported quarter.

In the reported quarter, APH’s adjusted earnings of 63 cents per share exceeded the Zacks Consensus Estimate by 21.15%. The earnings figure increased 57.5% year over year.

Net sales reported $4.81 billion, reflecting 47.7% year-over-year growth and surpassing the Zacks Consensus Estimate by 13.93%. Organically, net sales increased 33% year over year.

Click here to check the details of Amphenol’s first-quarter 2025 results.

Amphenol Corporation Price, Consensus and EPS Surprise

 

Amphenol Corporation Price, Consensus and EPS Surprise

Amphenol Corporation price-consensus-eps-surprise-chart | Amphenol Corporation Quote

The company’s shares have appreciated 19.6% in the trailing 12 months, significantly outperforming the Zacks Computer and Technology sector’s return of 1.4%. Following the results, APH shares have gained 8.21%.

Amphenol’s Communications Solutions Segment Drives Prospects

In the first quarter of 2025, APH's Communications Solutions segment achieved remarkable growth, underscoring its pivotal role in the company's overall performance. The segment achieved an operating margin of 27.4%, reflecting strong operational efficiency and profitability.

Amphenol’s Communications Solutions segment serves a broad range of markets, including automotive, aerospace, defense, industrial, IT, mobile devices and communications. 

APH's acquisition of CommScope’s Andrew business in February 2025 played a pivotal role in accelerating the momentum of its Communications Solutions segment.

The Communications Solutions division played a key role in Amphenol's positive outlook, driven by strong growth in mobile devices and defense. Defense sales increased 21% on a reported basis and 14% organically, whereas mobile device sales grew 20% both on a reported basis and organically. The segment achieved an impressive 73% organic surge in the first quarter of 2025, highlighting its vital role in advanced connectivity solutions.

APH’s 2Q25 Guidance Reflects Optimism

Building on its impressive first-quarter performance, Amphenol has issued a strong and optimistic outlook for the second quarter of 2025.

APH expects second-quarter 2025 earnings between 64 cents and 66 cents per share, indicating year-over-year growth of 45-50%. The Zacks Consensus Estimate for earnings is pegged at 55 cents per share, unchanged over the past 30 days and indicating 27.91% year-over-year growth.

Sales are anticipated between $4.90 billion and $5.00 billion, suggesting year-over-year growth of 36-39%. The consensus estimate for second-quarter 2025 sales is pegged at $4.54 billion, indicating a 25.87% year-over-year rise.

Zacks Rank & Upcoming Earnings to Watch

Currently, Amphenol has a Zacks Rank #3 (Hold).

Affirm (AFRM - Free Report) , Olo (OLO - Free Report) and SkyWater Technology (SKYT - Free Report) are some better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. These three companies flaunt a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Affirm is scheduled to report third-quarter fiscal 2025 results on May 8. Olo is set to report first-quarter fiscal 2025 results on May 8, and SkyWater Technology is scheduled to report first-quarter 2025 results on May 7.

Published in