Can Q4 Earnings Beat & Encouraging View Push APH Stock Higher?

Amphenol’s APH fourth-quarter 2024 adjusted earnings of 55 cents per share beat the Zacks Consensus Estimate by 10%. The earnings figure increased 34.1% year over year.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Net sales increased 29.8% year over year to $4.32 billion, beating the consensus mark by 7.01%. Organically, net sales increased 20%.Amphenol offered encouraging guidance for the first quarter of 2025, which is expected to push shares higher.  Amphenol Corporation Price and Consensus Amphenol Corporation price-consensus-chart | Amphenol Corporation Quote APH shares have returned 4.04% in pre-market trading following the results.APH’s Top-Line Grows Y/YAPH’s top line benefited from higher revenues across the IT datacom, mobile networks, broadband, defense, commercial air, and mobile devices automotive end-markets. It also benefited from APH’s acquisition program.Harsh Environment Solutions’ (29.2% of net sales) sales were $1.26 billion, up 40.2% year over year.Communications Solutions’ (44.7% of net sales) sales were $1.93 billion, which increased 43.3% year over year.Interconnect and Sensor Systems Solutions’ (26.1% of net sales) sales were $1.13 billion, up 4.3% year over year.Gross margin, on a GAAP basis, expanded 120 basis points (bps) year over year to 34.3%. Selling, general and administrative expenses, as a percentage of revenues, increased 10 bps on a year-over-year basis to 11.9%.Adjusted operating margin expanded 110 bps on a year-over-year basis to 22.4%.APH’s Balance Sheet Reflects High Debt LevelAs of Dec. 31, 2024, Amphenol had cash and cash equivalents worth $3.34 billion, up from $1.58 billion as of Sept. 30, 2024.Total debt was $6.89 billion as of Dec. 31, 2024, compared with $5.48 billion as of Sept. 30, 2024.During the quarter, the company purchased 2.4 million shares for $169 million. It also paid dividends of $199 million.Amphenol’s Q1 Guidance PositiveAmphenol expects first-quarter 2025 earnings between 49 cents and 51 cents per share, indicating growth between 23% and 28% year over year. Revenues are anticipated between $4 billion and $4.10 billion, suggesting growth in the 23-26% range. The Zacks Consensus Estimate for first-quarter 2025 revenues is pegged at $3.94 billion, suggesting a 20.89% increase year over year. The consensus estimate for earnings is pegged at 47 cents per share, unchanged over the past 30 days and indicates 17.5% year-over-year growth.Zacks Rank & Other Top-Ranked Technology StocksCurrently, Amphenol carries a Zacks Rank #2 (Buy).Bill Holdings BILL, Fortinet FTNT and Impinj PI are some other top-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. Each of the three stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Bill Holdings shares have appreciated 20.7% in the trailing 12-month period. BILL is set to report its second-quarter fiscal 2025 results on Feb. 6.Fortinet shares have returned 50.9% in the trailing 12-month period. FTNT is set to report its fourth-quarter fiscal 2024 results on Feb. 6.Impinj shares are up 33.8% in the trailing 12-month period. PI is set to report its fourth-quarter 2024 results on Feb. 5.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amphenol Corporation (APH): Free Stock Analysis Report Fortinet, Inc. (FTNT): Free Stock Analysis Report Impinj, Inc. (PI): Free Stock Analysis Report BILL Holdings, Inc. (BILL): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks