Amphenol forecasts strong quarter as AI, datacom demand lifts sales

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(Reuters) -Amphenol forecast fourth-quarter results above Wall Street estimates on Wednesday, driven by a strong demand for its products such as cables, sensors and antennas, sending its shares up 9% before the bell.

The upbeat results follow continued momentum in AI-related infrastructure spending by technology and defense firms, which has created sustained demand for the company.

The Connecticut-based company reported total third-quarter sales of $6.2 billion, beating analysts’ estimates of $5.53 billion compiled by LSEG.

Its communications solutions segment, which produces high-speed cables and antennas, generated $3.31 billion in sales during the quarter, up 96% from a year earlier.

Amphenol bought cable assembly firm Trexon in August for about $1 billion in cash, as it aims to tap into rising defense spending and expand its military-focused product portfolio.

For the current quarter, Amphenol forecast revenue between $6.0 billion and $6.1 billion, above the $5.7 billion expected by analysts.

Amphenol also forecasts adjusted EPS in the range of 89 cents to 91 cents, above analysts estimates of 80 cents.

The company’s board of directors approved a 52% increase in the its quarterly dividend, to $0.25 per share from $0.165 per share.

Amphenol serves multiple end markets including automotive, commercial aerospace, defense, industrial applications and data communications, positioning it to benefit from the ongoing technology infrastructure buildout across sectors.

(Reporting by Kritika Lamba in Bengaluru; Editing by Krishna Chandra Eluri)