Amphenol sees third-quarter revenue below estimates on weak equipment demand (updated)

Vistance Networks

24/07/2024 15:37

(Rewrites throughout)
       July 24 (Reuters) - Electronic equipment maker Amphenol
 APH.N  forecast third-quarter revenue below market estimates on
Wednesday, as customers across broadband and industrial markets
scale back on spending in the face of high borrowing costs.
    Shares of the Wallingford, Connecticut-based company fell
4.2% in early trading.  
    Amphenol makes equipment such as interconnect systems,
sensors and antennas that are used in automobile, industrial and
defense sectors.
    Network operators and wireless equipment manufacturers,
which are some of the biggest customers of Amphenol, are cutting
back on communication equipment orders after a surge in demand
in the past two years to upgrade to 5G networks.    
    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.
    Automakers have also cut production targets, resulting in
weak  demand for equipment including antennas, engine management
systems and sensing systems used in the industrial market.
    Amphenol forecast third-quarter revenue in the range of
$3.70 billion to $3.80 billion, the mid-point of which is below
analysts' expectations of $3.71 billion, according to LSEG data.
   
    It 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.
    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;))