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

Amphenol APH is set to report fourth-quarter 2021 results on Jan 26, 2022.

Amphenol expects fourth-quarter 2021 earnings between 61 cents and 63 cents per share, indicating 7% to 11% year-over-year growth. Revenues are anticipated to be $2.690-$2.750 billion, indicating 11-13% year-over-year growth.

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $2.72 billion, implying growth of 12.3% from the figure reported in the year-ago quarter.

The consensus mark for earnings has stayed at 63 cents per share over the past 30 days, suggesting 10.5% growth from the figure reported in the year-ago quarter.

Amphenol’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, the average surprise being 8.88%.

Amphenol Corporation Price and EPS Surprise

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 diversified business model lowers the volatility of individual-end markets and geographies. Contributions from acquisitions of Unlimited Services, Euromicron, Cabelcon, MTS Systems, Onanon, Cablescan, XGiga and EXA Thermometrics are expected to have aided fourth-quarter results.

Military market sales are expected to have increased sequentially due to the addition of MTS sensors to the product offering, as well as strong demand for interconnect and sensor products. Accelerating adoption of electronics in defense equipment systems and the overall favorable defense spending environment are trends that have been benefiting Amphenol in the past few quarters. These are expected to have continued in the to-be-reported quarter.

The Aerospace end market is expected to have witnessed mid-teens increase in sales on a sequential basis (down roughly 10% year over year) in the reported quarter.

Addition of MTS sensors like position, vibration, force and shock in the portfolio is expected to have increased industrial end-market sales. The acquisition of Unlimited Services has further strengthened Amphenol’s position in this market.

However, industrial end-market sales are expected to have witnessed moderate growth sequentially in the to-be-reported quarter. In the third quarter, industrial market represented 26% of Amphenol’s sales and jumped 44% year over year.

Strong mobile network sales, driven by investments in next-generation mobile networks and the acquisition of Euromicron, are expected to have benefited Amphenol’s fourth-quarter results.

Information Technology and Data Communications sales are expected to have benefited from increased demand for Amphenol’s solutions required to accelerate bandwidth capacity expansions in order to support ongoing work-from-home and online-learning waves.

Amphenol’s fourth-quarter 2021 top line is expected to have suffered from supply chain disruptions in the improved automotive end-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.

Amphenol has an Earnings ESP of 0.00% and a Zacks Rank #3. 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:

Apple AAPL has an Earnings ESP of +2.89% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Apple shares have returned 32.8% in the past year, underperforming the Zacks Computer and Technology sector’s rally of 15.5%.

Cirrus Logic CRUS has an Earnings ESP of +1.48% and a Zacks Rank of 1.

Cirrus Logic shares have declined10.5% in the past year, underperforming the Zacks Computer and Technology sector.

Advanced Micro Devices AMD has an Earnings ESP of +6.20% and a Zacks Rank of 2.

AMD shares have returned 47.5% in the past year, outperforming the Zacks Computer and Technology sector.

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

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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