Company Reports

Amphenol conducted a 2-for-1 stock split on Sept. 3. Every shareholder will receive one additional share per share held.

We think Amphenol is a differentiated connector supplier, an excellent operator, and an exceptional steward of shareholder capital. It has numerous competitors in the fragmented electrical component industry, but its broad array of end markets allows Amphenol to expand its top line even in an individual market downturn. We think the firm’s singular ability to effect cost controls gives it the highest operating margins of its peer group, allowing it to quickly bring its numerous acquisitions up to firmwide profitability.

Amphenol reported another blowout period, with second-quarter results coming in well above guidance. Sales rose 55% year over year to $8.8 billion, and non-GAAP operating margin rose 420 basis points year on year to 29.8%. Guidance implies further strong growth.

We think Amphenol is a differentiated connector supplier, an excellent operator, and an exceptional steward of shareholder capital. It has numerous competitors in the fragmented electrical component industry, but its broad array of end markets allows Amphenol to expand its top line even in an individual market downturn. We think the firm’s singular ability to effect cost controls gives it the highest operating margins of its peer group, allowing it to quickly bring its numerous acquisitions up to firmwide profitability.

Amphenol reported phenomenal first-quarter results and second-quarter guidance, highlighted by a near-doubling of data center revenues year over year. March quarter revenue rose 58% year over year to $7.6 billion, and $8.15 billion second quarter sales guidance implies 44% year over year growth.

We think Amphenol is a differentiated connector supplier, an excellent operator, and an exceptional steward of shareholder capital. It has numerous competitors in the fragmented electrical component industry, but its broad array of end markets allows Amphenol to expand its top line even in an individual market downturn. We think the firm’s singular ability to effect cost controls gives it the highest operating margins of its peer group, allowing it to quickly bring its numerous acquisitions up to firmwide profitability.

We think Amphenol is a differentiated connector supplier, an excellent operator, and an exceptional steward of shareholder capital. It has numerous competitors in the fragmented electrical component industry, but its broad array of end markets allows Amphenol to expand its top line even in an individual market downturn. We think the firm’s singular ability to effect cost controls gives it the highest operating margins of its peer group, allowing it to quickly bring its numerous acquisitions up to firmwide profitability.

Amphenol's fourth-quarter results crushed management's guidance, and the firm guided to strong sequential growth with the CommScope acquisition now closed. Shares sold off more than 10% after hours, however, due to an implied sequential decline in organic revenue in the first quarter.

Amphenol's third-quarter results vastly exceeded guidance, with sales rising 53% year over year to $6.2 billion and non-GAAP operating margin rising 560 basis points year over year to 27.5%. Fourth-quarter guidance implies a sequential moderation in sales and profitability.

We think Amphenol is a differentiated connector supplier, an excellent operator, and an exceptional steward of shareholder capital. It has numerous competitors in the fragmented electrical component industry, but its broad array of end markets allows Amphenol to expand its top line even in an individual market downturn. We think the firm’s singular ability to effect cost controls gives it the highest operating margins of its peer group, allowing it to quickly bring its numerous acquisitions up to firmwide profitability.

Amphenol announced a deal to acquire CommScope's Connectivity and Cable Solutions business for $10.5 billion in cash. Management estimates the business at $3.6 billion in sales and 26% EBITDA margins in 2025. Management expects the deal to close in the first half of 2026.

Amphenol's second-quarter results crushed guidance. Revenue rose 57% year over year (41% organically) and 17% sequentially to $5.65 billion. Non-GAAP operating margin rose 210 basis points sequentially to 25.6%. Third-quarter guidance implies a low sequential decline from these levels.

We think Amphenol is a differentiated connector supplier, an excellent operator, and an exceptional steward of shareholder capital. Amphenol competes against numerous competitors in the fragmented electrical component industry, but its broad array of end markets allows it to expand the top line even amid an individual market downturn. We also think the firm’s singular ability to effect cost controls gives it the highest operating margins of its peer group, allowing it to quickly bring its numerous acquisitions up to firmwide profitability.

We think Amphenol is a differentiated connector supplier, an excellent operator, and an exceptional steward of shareholder capital. Amphenol competes against numerous competitors in the fragmented electrical component industry, but its broad array of end markets allows it to expand the top line even amid an individual market downturn. We also think the firm’s singular ability to effect cost controls gives it the highest operating margins of its peer group, allowing it to quickly bring its numerous acquisitions up to firmwide profitability.

We think Amphenol is a differentiated connector supplier, an excellent operator, and an exceptional steward of shareholder capital. Amphenol competes against myriad competitors in the fragmented electrical component industry, but its broad array of end markets allows it to expand the top line even amid an individual market downturn. We also think the firm’s singular ability to effect cost controls gives it the highest operating margins of its peer group, and allows it to quickly bring its numerous acquisitions up to firmwide profitability.

Amphenol's first-quarter results blew past management's guidance. Sales of $4.8 billion rose 48% year over year (guidance was $4.1 billion) and non-GAAP operating margin reached a record 23.5%. Second-quarter guidance implies further growth, with a sales midpoint just under $5.0 billion.

Many technology hardware stocks under our coverage plunged in Monday trading after reports of DeepSeek's R1 generative artificial intelligence model out of China offering performance parity to top US models at a much lower training cost. The iShares Semiconductor ETF was down 8% in midday trading.

Amphenol beat its guidance for both sales and profit in the fourth quarter. Fourth-quarter sales rose 30% year over year and 7% sequentially to $4.32 billion. Non-GAAP operating margin rose 120 basis points year over year to 22.4%. First-quarter guidance implies more than 20% year-over-year growth.

We think Amphenol is a differentiated connector supplier, an excellent operator, and an exceptional steward of shareholder capital. Amphenol competes against myriad competitors in the fragmented electrical component industry, but its broad array of end markets allows it to expand the top line even amid an individual market downturn. We also think the firm’s singular ability to effect cost controls gives it the highest operating margins of its peer group, and allows it to quickly bring its numerous acquisitions up to firmwide profitability.

We raise our fair value estimate for wide-moat Amphenol to $64 per share, from $55, as we lift our growth forecast for the firm. Amphenol’s demand is booming in 2024 across its end markets and particularly for data center products that serve AI applications. We expect strong demand to endure through 2025. The firm’s third-quarter results were well above our above-consensus expectations, and we expect rapid growth to continue in the short term. We also now factor in an earlier expected closing for Amphenol’s $2.1 billion acquisition of pieces of CommScope (formerly Andrew Corporation, acquired by CommScope in 2007). We still see Amphenol’s normal growth in the mid to high single digits longer term and believe it can achieve this growth even off our higher 2025 revenue estimate. Shares look fairly valued to us for this high-quality stock.