Amphenol beats results estimates on demand from datacom, defense sectors

Amphenol

22/01/2025 14:37

Jan 22 (Reuters) - Electronic equipment maker Amphenol
 APH.N  on Wednesday reported fourth-quarter sales and profit
above estimates, bolstered by strong demand for its sensors and
connectors from sectors including data communications and
defense.
    The Wallingford, Connecticut-based company's shares rose
2.5% in early trading.
    Businesses eager to adopt artificial intelligence
technologies, as well as governments boosting their defense
budgets in response to rising geopolitical tensions, are driving
demand for the company's connectors and sensors. 
        Amphenol makes interconnect systems, sensors and
antennas used in automotive, industrial, defense and other
sectors. In 2023, the IT and data communications segment made up
about 39% of the firm's total sales, while the interconnect and
sensor systems represented roughly 33%.
    Its revenue has also received a big boost from a series of
acquisitions over the past year, including a $2 billion deal for
a unit of Carlisle Companies  CSL.N  that supplies cables and
connectors to defense and industrial sectors. 
    The purchases have helped Amphenol diversify its portfolio
and tap into new markets.
    "We have expanded our range of high-technology interconnect
products, both through our organic innovation efforts as well as
through our successful acquisition program," CEO R. Adam Norwitt
said.
    The company forecast first-quarter sales between $4 billion
and $4.10 billion, a growth of 23% to 26% from a year ago.
Analysts expected $3.94 billion, according to data compiled by
LSEG.
    Amphenol's fourth-quarter sales were $4.3 billion, compared
with estimates of $4.07 billion. Its adjusted earnings of 55
cents per share beat estimates of 50 cents.
    

 (Reporting by Kritika Lamba in Bengaluru; Edited by Sahal
Muhammed)
 ((Kritika.Lamba@thomsonreuters.com;))