Amphenol Corp. (APH:US) jumped the most in more than three years, leading gains in the Standard & Poor’s 500 Index (SPX), after the maker of electronic and fiber-optic connectors raised its full-year profit and revenue forecasts.
Earnings this year may be $3.38 to $3.44 a share, up from a previous estimate of $3.30 to $3.38 a share, the Wallingford, Connecticut-based company said today. Sales may be $4.21 billion to $4.25 billion, compared with a previous target of $4.11 billion to $4.19 billion, Amphenol said.
Amphenol “continues to execute with impressive stability,” Amit Daryanani, an RBC Capital Markets analyst in San Francisco, said in a note to clients. “We sense Amphenol is being conservative with the modest increase” to its full-year outlook, “which should yield further upside versus expectations should the macro stabilize and improve.”
The shares (APH:US) advanced 15 percent to $58.94 at the close in New York, their biggest single-day increase since January 2009.
Second-quarter earnings climbed to 86 cents a share, Amphenol said today, beating the 84-cent average estimate in a Bloomberg survey (APH:US) of 14 analysts. Profit a year earlier was 85 cents.
Amphenol “remains well positioned to sustain 10 percent plus revenue and high teens EPS growth going forward,” Daryanani said. He has a top pick rating on its shares.
“Despite the widely reported uncertainties in many global economies, we believe we can perform well,” Chief Executive Officer R. Adam Norwitt said in a statement. “The electronics revolution continues to accelerate, with new applications and higher performance requirements driving increased demand.”
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