Wallingford, Connecticut-based Amphenol Corporation (APH) designs, manufactures, and markets electrical, electronic, and fiber optic connectors in the U.S., China, and internationally. With a market cap of $88.5 billion, Amphenol operates through the Harsh Environment Solutions, Communications Solutions, and Interconnect and Sensor Systems segments.
The electronic components manufacturer has outperformed the broader market by a large margin over the past year. APH stock prices have surged 48.1% on a YTD basis and 69.5% over the past year, compared to the S&P 500 Index’s ($SPX) 25.8% gains in 2024 and 35.9% returns over the past year.
Zooming in further, APH has also outperformed the Technology Select Sector SPDR Fund’s (XLK) 22.5% gains in 2024 and 31.4% returns over the past 52-week period.
Amphenol stock prices experienced a uptick of 2.4% after the release of its impressive Q3 earnings on Oct. 23. The company observed a strong demand in the IT datacom, mobile networks, mobile devices, and defense sectors leading to 15% year-over-year growth in organic sales. Moreover, after considering acquisitions, Amphenol’s overall net sales grew by a staggering 26.2% year-over-year to $4 billion, exceeding Wall Street’s topline estimates by a substantial 7.1%.
Additionally, Amphenol also observed a significant growth in profitability with its adjusted EPS surging 28.2% year-over-year to $0.50, exceeding analysts’ expectations by 11.1%.
For the current fiscal year, ending in December, analysts expect a massive 22.7% year-over-year growth in adjusted EPS to $1.84. Moreover, Amphenol has a robust earnings surprise history. It has surpassed analysts’ bottom-line estimates in each of the past four quarters.
APH stock has a consensus “Moderate Buy” rating overall. Out of the 15 analysts covering the stock, 10 recommend “Strong Buy,” and five advise a “Hold” rating.
This configuration is less bullish than three months ago, when 15 analysts had an overall consensus rating of “Strong Buy” among which 11 analysts recommended a “Strong Buy” rating.
On Oct. 26, TD Cowen analyst Joseph Giordano maintained a “Hold” rating on APH, while raising the price target to $63.
APH’s mean price target of $76.93 represents a premium of 4.8% to current price levels. Meanwhile, the Street-high target of $87 suggests a potential upside of 18.5%.
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On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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