Amphenol Reports Q3 Earnings Above Expectations But Forecasts Lower Q4 Revenue Due to Reduced Telecom Spending

Company shares fall 3% in premarket trading following Q4 revenue concerns; weaker demand from telecom providers and auto industries amid high borrowing costs contribute to forecasted reduction.

Amphenol Corp has reported Q3 earnings above Wall Street expectations with an adjusted EPS of 78 cents against the estimated 74 cents. The reported net income for Q3 was $513.9 million.
The company saw strong demand for its radar systems and circuit boards, which helped boost its Q3 revenue to $3.2 billion, surpassing estimates of $3.08 billion.
Despite optimistic Q3 results, the company’s Q4 revenue forecast is lower than market estimates, with predictions between $3.09 billion and $3.15 billion due to spending cuts by its clients across various industries.
Decreased orders from telecom providers after their extensive 5G network developments and reduced production targets by automakers have led to a drop in demand for Amphenol's communications equipment and automotive products.
Following the announcement of Q4 expectations, shares of the Connecticut-based company fell 3% in premarket trading. However, overall Amphenol shares have increased 4% since the beginning of the year and 11% in the last 12 months.