Earnings Beat: Amphenol Corporation Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

A week ago, Amphenol Corporation (NYSE:APH) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. Amphenol delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting US$5.7b-12% above indicated-andUS$0.86-28% above forecasts- respectively This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the most recent consensus for Amphenol from 16 analysts is for revenues of US$21.7b in 2025. If met, it would imply a notable 15% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to ascend 18% to US$3.08. In the lead-up to this report, the analysts had been modelling revenues of US$20.4b and earnings per share (EPS) of US$2.66 in 2025. So it seems there's been a definite increase in optimism about Amphenol's future following the latest results, with a solid gain to the earnings per share forecasts in particular.

Check out our latest analysis for Amphenol

With these upgrades, we're not surprised to see that the analysts have lifted their price target 13% to US$112per share. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Amphenol, with the most bullish analyst valuing it at US$126 and the most bearish at US$83.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Amphenol shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Amphenol's past performance and to peers in the same industry. The analysts are definitely expecting Amphenol's growth to accelerate, with the forecast 32% annualised growth to the end of 2025 ranking favourably alongside historical growth of 14% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.9% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Amphenol is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Amphenol's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Amphenol. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Amphenol analysts - going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Amphenol that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.