Electronic gear maker Amphenol forecasts upbeat quarterly revenue on data center demand
Electronic gear maker Amphenol forecasts upbeat quarterly revenue on data center demand July 29 - Electronic gear maker Amphenol APH.N forecast third-quarter revenue above Wall Street estimates on Wednesday, as spending on AI data centers boosted demand for its connectivity products.
Shares of the company rose 5.7% in premarket trading.
Here are more details:
Demand for Amphenol's connectors and sensor systems surged as tech companies aggressively build out data center infrastructure needed to support generative AI workloads.
The company's Communications Solutions segment, its largest business and the unit most exposed to IT infrastructure and networking equipment demand, posted an 85% jump in sales of $5.38 billion in the second quarter.
Amphenol raised its full-year sales forecast for its recently acquired CommScope business to $4.6 billion, from its prior projection of $4.1 billion.
Amphenol forecast revenue in the range of $9.3 billion to $9.4 billion for the third quarter, compared with analysts' average estimate of $8.69 billion, according to data compiled by LSEG.
It reported revenue of $8.76 billion for the quarter ended June 30, compared with estimates of $8.23 billion, while adjusted profit came in at $1.35 per share, compared with estimates of $1.18 per share.
(Reporting by Prathik Jayaprakash in Bengaluru; Editing by Vijay Kishore and Leroy Leo)
((Prathik.Jayaprakash@thomsonreuters.com; +91 9916364306))
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