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Investing.com -- Amphenol Corp shares rose more than 8% in premarket trading on Wednesday after the connector maker reported strong third-quarter results and lifted its dividend amid surging demand from data centers and AI infrastructure.
The Wallingford, Connecticut-based company posted adjusted earnings of $0.93 per share, up 86% from a year earlier and above analysts’ forecast of $0.79. Revenue climbed 53% to $6.2 billion, beating the $5.53 billion consensus, as strong growth in nearly all end markets offset supply chain pressures.
Operating margin rose to a record 27.5%, while free cash flow reached $1.2 billion. Amphenol said it bought back $153 million of its stock and paid $201 million in dividends during the quarter.
The company raised its quarterly dividend by 52% to $0.25 per share, payable Jan. 7.
Company reiterated confidence in growth from its exposure to high-speed connectivity markets such as data centers and advanced electronics, as demand for interconnect products linked to artificial intelligence systems continues to accelerate.
“Sales increased from prior year by 53%, driven by strong organic growth in virtually all of our end markets, including exceptional organic growth in the IT datacom market, as well as contributions from the Company’s acquisition program,” said CEO R. Adam Norwitt
For the fourth quarter, Amphenol expects earnings of $0.89 to $0.91 a share on revenue of $6.0 billion to $6.1 billion, both ahead of Wall Street estimates. For the full year, it sees adjusted earnings of $3.26 to $3.28 a share and revenue of up to $22.76 billion, marking about 50% sales growth over 2024.
Amphenol, which recently acquired Rochester Sensors and expects to complete purchases of Trexon and CommScope’s CCS business in coming quarters, said its diversification and acquisitions remain central to its long-term strategy.