Amphenol beats Q2 revenue on steady demand for defense, communication equipment

Vistance Networks

24/07/2024 13:38

July 24 (Reuters) - Electronic equipment maker Amphenol
 APH.N  beat market estimates for second-quarter sales on
Wednesday, on the back of growing demand for defense and
communication equipment.
    Amid the dynamic geopolitical environment, countries across
the globe are expanding their investments in next-generation
defense technologies.
    Amphenol makes equipments such as connectors and sensor
systems that are used in automobile, industrial and defense
sectors.
    Shares of the Wallingford, Connecticut-based company rose
2.5% in premarket trading.  
    The company posted revenue of $3.61 billion for the three
months ended June 30, compared with an estimate of $3.4 billion,
according to LSEG data.
    With the acquisition of Carlisle Interconnect Technologies
and its recent plan to buy outdoor wireless network and antenna
systems business from CommScope  COMM.O  for $2.1 billion,
Amphenol has been on an acquisition spree to broaden its
existing portfolio.
    Amphenol's information technology and data communications
segment reported revenue of $1.44 billion in the second quarter,
driven by growing demand for products used in artificial
intelligence data centers.
    It forecast third-quarter revenue in the range of $3.70
billion to $3.80 billion, compared with expectations of $3.71
billion.
    On an adjusted basis, Amphenol expects profit in the range
of 43 cents to 45 cents, the mid-point of which is in line with
analysts' estimates.
    Amphenol's board approved a 50% rise in quarterly dividend
to 16 cents from 11 cents, which will be paid on Oct. 9.


 (Reporting by Priyanka.G in Bengaluru; Editing by Krishna
Chandra Eluri)
 ((Priyanka.G@thomsonreuters.com;))