Amphenol forecasts upbeat Q4 sales, profit on strong demand for electronic equipment
Oct 23 (Reuters) -Amphenol APH.N projected fourth-quarter sales and profit above Wall Street estimates on Wednesday, boosted by strong demand for its sensors and connectors in the IT, data communications and defense sectors.
Shares of the electronic equipment maker, which also comfortably beat third-quarter estimates, rose more than 5% in early trading.
Amphenol benefited from increased spending in the information technology industry, powered by the AI boom, as its fiber optic technologies are used in cloud computing, data centers, gaming systems and networking equipment.
Additionally, worldwide geopolitical tensions have caused an uptick in defense spending by countries, driving demand for Amphenol's equipment used in defense systems including engines, ground vehicles, tanks and radar systems.
Last year, the defense sector made up about 11% of Amphenol's total sales, while the IT and data communications market represented roughly 19%.
Wallingford, Connecticut-based Amphenol expects fourth-quarter sales to jump 19% to 22% or between $3.95 billion and $4.05 billion, while analysts polled by LSEG expect revenue of $3.94 billion.
The company projected adjusted earnings of 48 cents to 50 cents per share, above estimates of 47 cents per share.
Amphenol reported an adjusted profit of 50 cents per share in the third quarter ending on Sept. 30, beating expectations of 45 cents per share. It reported a 26% jump in sales to $4.04 billion, while analysts estimated $3.80 billion.
Reporting by Deborah Sophia in Bengaluru; Editing by Vijay Kishore
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