It has been about a month since the last earnings report for Amphenol (APH). Shares have lost about 11.7% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Amphenol due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

Amphenol’s Q4 Earnings Beat Estimates, Revenues Up Y/Y

Amphenol’s 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.

Net sales increased 29.8% year over year to $4.32 billion, beating the consensus mark by 7.01%. Organically, net sales increased 20%.

APH’s Top-Line Grows Y/Y

APH’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 Level

As 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 Positive

Amphenol 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.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed an upward trend in estimates revision.

The consensus estimate has shifted 10.64% due to these changes.

VGM Scores

Currently, Amphenol has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. 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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