Amphenol Q3 sales beat estimates on IT datacom growth, acquisitions

Overview

• U.S. interconnect products maker's Q3 sales rose 65% yr/yr, beating analyst expectations

• Adjusted EPS for Q3 rose 74% yr/yr, beating analyst expectations

• Company raised dividend by 20% and announced new $4 bln stock buyback

Outlook

• Company expects Q4 sales of $10.3 bln to $10.5 bln

• Company expects 2026 sales of $36.9 bln to $37.1 bln

• Outlook excludes impact of pending acquisitions AdvancedPCB, Dexgreen and Humanetics Sensors

Result Drivers

• ORGANIC GROWTH AND ACQUISITIONS - Co said sales growth was driven by strong organic growth across most end markets, especially IT datacom, and by contributions from acquisitions

• RECORD ORDERS - Co reported record orders in Q3, resulting in a book-to-bill ratio of 1.19

• MARGIN EXPANSION - Co reported higher adjusted operating margin at 29.7% in Q3

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electronic equipment & parts peer group is "buy"

• Wall Street's median 12-month price target for Amphenol Corp is $104.00, about 33% above its October 27 closing price of $78.21

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 34 three months ago

Reuters Recommended Reads

• Oct 27 - Hong Kong's ASMPT Q3 revenue rises 49% on AI demand

• Oct 27 - Seagate Technology Q1 revenue and adjusted EPS beat estimates

• Oct 28 - Littelfuse Q3 sales rise 23% on electronics segment strength

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)