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Investing.com - Amphenol Corporation (NYSE:APH), currently trading near its 52-week high of $108.85 with a market capitalization of $126.73 billion, maintained its Outperform rating from Evercore ISI, which reiterated its $110.00 price target following the company’s second-quarter earnings report that exceeded expectations. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, with strong YTD returns of 51%.
The connector manufacturer reported second-quarter revenue of $5.65 billion and earnings per share of $0.81, significantly outperforming analyst expectations of $5.04 billion and $0.67, respectively. Sales increased 56.5% year-over-year, with 41% attributed to organic growth, surpassing the company’s guidance range of $4.8-5.0 billion. The company’s strong performance is reflected in its "GOOD" Financial Health score from InvestingPro, which offers 18 additional valuable insights about Amphenol’s financial position.
Growth was primarily driven by the IT Datacom segment, which benefited from accelerating artificial intelligence deployments, along with contributions from the Andrew acquisition. The company reported broad growth across all end markets, with gross margins reaching 36.3% (up 217 basis points quarter-over-quarter) and operating margins hitting an all-time high of 25.6%. This performance builds on Amphenol’s track record of consistent dividend payments, which it has maintained for 21 consecutive years, with 13 years of consecutive increases.
For the third quarter, Amphenol provided guidance above street expectations, projecting sales of $5.4-5.5 billion versus analyst estimates of $5.24 billion, and earnings per share of $0.77-0.79 compared to the $0.69 consensus. This guidance represents a slight sequential decline of 3-4% but a 35% year-over-year increase.
Amphenol also announced its acquisition of Narda-MITEQ, a designer and manufacturer of active RF interconnect components primarily serving the defense market, with expected annual sales of approximately $120 million. The business will be included in the company’s Harsh Environment Solutions segment.
In other recent news, Amphenol Corporation reported robust financial results for the second quarter of 2025, surpassing analyst expectations. The company achieved an earnings per share of $0.81, significantly higher than the forecasted $0.66, representing a 22.73% surprise. Additionally, Amphenol’s revenue reached $5.7 billion, exceeding the anticipated $5.02 billion by 13.55%. Despite these strong results, the company noted a book-to-bill ratio below 1 and provided guidance that IT Datacom would decline by mid-to-high single digits quarter-over-quarter. Following these developments, BofA Securities raised its price target for Amphenol from $102 to $110, while maintaining a Neutral rating on the stock. These updates indicate a mixed outlook, with strong earnings but cautious guidance.
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