A month has gone by since the last earnings report for Amphenol (APH). Shares have added about 4.2% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Amphenol due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Amphenol Corporation before we dive into how investors and analysts have reacted as of late.
Amphenol Earnings Surpass Estimates in Q2, Sales Increase Y/Y
Amphenol’s second-quarter 2025 adjusted earnings of 81 cents per share beat the Zacks Consensus Estimate by 22.73%. The earnings figure increased 88.4% year over year.
Net sales increased 56.5% year over year to $5.7 billion, beating the consensus mark by 13.05%, Organically, net sales increased 41% year over year.
APH’s Q2 Top-Line Details
Harsh Environment Solutions’ (25.6% of net sales) sales were $1.45 billion, up 38.2% year over year.
Communications Solutions’ (51.5% of net sales) sales were $2.91 billion, which increased 101.4% year over year.
Interconnect and Sensor Systems Solutions’ (22.9% of net sales) sales were $1.3 billion, up 15.7% year over year.
Gross margin, on a GAAP basis, expanded 270 basis points (bps) year over year to 36.3%.
Selling, general and administrative expenses, as a percentage of revenues, decreased 130 bps on a year-over-year basis to 11%.
Adjusted operating margin expanded 430 bps on a year-over-year basis to 25.6%.
APH’s Balance Sheet & Cash Flow
As of June 30, 2025, Amphenol had cash and cash equivalents worth $3.23 billion, down from $3.34 billion as of Dec. 31, 2024.
Total debt was $8.06 billion as of June 30, 2025, compared with $6.89 billion as of Dec. 31, 2024.
During the second quarter, the company purchased 2 million shares for $160 million. It also paid dividends of $200 million.
APH generated $1.4 billion in cash from operations in the second quarter, up from $764.9 million in the previous quarter, indicating a substantial increase.
The company generated a non-GAAP free cash flow of $1.1 billion in the second quarter, up from $580.4 million in the first quarter, reflecting a strong sequential improvement.
Amphenol’s Q3 Guidance Positive
Amphenol expects third-quarter 2025 earnings between 77 cents and 79 cents per share, indicating growth between 54% and 58% year over year.
Revenues are anticipated between $5.4 billion and $5.5 billion, suggesting growth in the 34-36% range.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
The consensus estimate has shifted 16.39% due to these changes.
VGM Scores
At this time, Amphenol has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Amphenol has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
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Amphenol Corporation (APH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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