Amphenol (APH) Down 3.7% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for Amphenol (APH). Shares have lost about 3.7% 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? Well, first let's take a quick look at the latest 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 Q3, Sales Increase Y/YAmphenol’s third-quarter 2025 adjusted earnings of 93 cents per share beat the Zacks Consensus Estimate by 17.7%. The earnings figure jumped 86% year over year.Net sales surged 53% year over year to $6.19 billion, beating the consensus mark by 12.9%. Organically, net sales increased 41% year over year.This exceptional top-line performance was driven by strong organic growth in the IT datacom end-market and strong contribution from acquisitions.APH’s Q3 Top-Line DetailsHarsh Environment Solutions’ (24.5% of net sales) sales were $1.52 billion, up 27% year over year.Communications Solutions’ (53.4% of net sales) sales were $3.31 billion, which jumped 96.4% year over year.Interconnect and Sensor Systems Solutions’ (22.1% of net sales) sales were $1.37 billion, up 18% year over year.Gross margin, on a GAAP basis, expanded 450 basis points (bps) year over year to 38.1%. Selling, general and administrative expenses, as a percentage of revenues, decreased 160 bps on a year-over-year basis to 10.6%.Adjusted operating margin expanded 560 bps on a year-over-year basis to 27.5%.APH’s Balance Sheet & Cash FlowAs of Sept. 30, 2025, Amphenol had cash and cash equivalents worth $3.89 billion, up from $3.23 billion as of June 30, 2025.Total debt was $8.07 billion as of Sept. 30, 2025, compared with $8.06 billion as of June 30, 2025.During the third quarter, the company purchased 1.4 million shares for $153 million. It also paid dividends of $201 million.APH generated $1.47 billion in cash from operations in the third quarter, up from $1.4 billion in the previous quarter.The company generated a non-GAAP free cash flow of $1.22 billion in the third quarter, up from $1.1 billion in the second quarter.Amphenol’s Q4 Guidance PositiveAmphenol expects fourth-quarter 2025 earnings between 89 cents and 91 cents per share, indicating growth between 62% and 65% year over year. Revenues are anticipated between $6 billion and $6.1 billion, suggesting growth in the 39-41% range. For 2025, Amphenol expects earnings between $3.26 per share and $3.28 per share, indicating growth between 72% and 74% from 2024’s reported figure. Revenues are anticipated between $22.66 billion and $22.76 billion, suggesting growth in the 49-50% range.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.The consensus estimate has shifted 17.2% due to these changes.VGM ScoresAt 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 has a score of F on the value side, putting it in the fifth 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.OutlookEstimates 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.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amphenol Corporation (APH): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks