Adds shares milestone in paragraph 2
April 23 (Reuters) - Electronics equipment maker Amphenol APH.N forecast second quarter results above Wall Street estimates on Wednesday, betting on growing demand in data communications and defense markets.
The Wallingford, Connecticut-based company's shares rose 12% in morning trading and were on track for their biggest one-day percentage increase in more than a decade, if gains hold.
Growing adoption of generative artificial intelligence technologies has boosted demand for tools by companies such as Amphenol.
The company makes interconnect systems, sensors and antennas used in automotive, industrial, defense and other sectors. Its customers include cloud and data center providers and chipmakers.
The company also reported record sales in the first quarter, an increase of 48% from a year ago, driven by growth in data communication, mobile devices, defense and the company's acquisitions, CEO R. Adam Norwitt said.
Amphenol bought CommScope's COMM.O Outdoor Wireless Networks and Distributed Antenna Systems businesses in February. Last year, it had acquired Carlisle Interconnect Technologies, a unit of Carlisle Companies CSL.N.
Despite the upbeat result and forecast, the company said economic and geopolitical environment remains uncertain.
In April, U.S. President Donald Trump raised baseline tariffs on Chinese imports to 145% and deepened the trade war. In retaliation, China has imposed a 125% tariff on U.S. goods.
About 22% of Amphenol's net sales in 2024 were from China.
The company expects second-quarter sales between $4.90 billion and $5.00 billion, a growth of 36% to 39% from a year ago. Analysts expected $4.58 billion, according to data compiled by LSEG.
Adjusted profit per share is expected to be in the range of 64 cents to 66 cents, compared with estimates of 55 cents per share.
First quarter sales were $4.8 billion, compared with estimates of $4.23 billion. Its adjusted earnings per share of 63 cents beat estimates of 52 cents.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Sahal Muhammed)
((Jaspreet.Singh@thomsonreuters.com; on X @i_jass;))
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.