What Happened?
Shares of electrical connector manufacturer Amphenol (NYSE: APH) jumped 3.7% in the afternoon session after the company reported record second-quarter financial results that surpassed analyst expectations and providing an upbeat forecast for the third quarter.
The electronic components manufacturer announced adjusted earnings per share (EPS) of $0.81 on revenue of $5.7 billion. These figures significantly beat Wall Street's consensus estimates, which called for an EPS of $0.66 on $5.02 billion in revenue. EPS is a measure of a company's profit allocated to each outstanding share of stock. The strong performance was driven by substantial organic growth of 41% compared to the prior year, with the Communications Solutions segment showing exceptional strength. Looking ahead, Amphenol projected third-quarter sales between $5.4 billion and $5.5 billion, with adjusted EPS expected to be in the range of $0.77 to $0.79. This positive guidance, which also came in above analyst forecasts, signaled continued confidence from management in the company's growth trajectory.
After the initial pop the shares cooled down to $98.78, down 3% from previous close.
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What Is The Market Telling Us
Amphenol’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock gained 12.1% on the news that the company reported impressive first-quarter 2025 results, which blew past analysts' revenue and EPS expectations. Sales jumped 48% year on year on a reported basis, and every business unit contributed, with the Communications Solutions segment doubling sales. Looking ahead, its EPS guidance for next quarter outperformed Wall Street's estimates by a wide margin. Zooming out, we think this quarter featured some important positives.
Amphenol is up 43.2% since the beginning of the year, and at $98.78 per share, it is trading close to its 52-week high of $103.71 from July 2025. Investors who bought $1,000 worth of Amphenol’s shares 5 years ago would now be looking at an investment worth $3,744.
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