Amphenol Earnings: Great Execution and Profitability in a Challenging Year, Valuation Maintained

We maintain our $83 fair value estimate for Amphenol shares after second-quarter results beat guidance but third-quarter results modestly missed our expectations. Communications and consumer-facing end markets continue to be soft, but we like to see ongoing strength out of automotive and military sales. We are also pleased with improving orders across end markets as a positive leading indicator for results. Amphenol’s best-in-class margins once again impressed in the quarter. The firm’s ability to consistently execute on profitability is a large tenet of our wide-moat thesis on the blue chip company. At present, we don’t love Amphenol’s valuation, but it is a fundamentally terrific name for investors to buy upon a pullback.