Key Takeaways Amphenol stock rose 7% in a month, outperforming peers and the Computer and Technology sector's 2.5% gain. Q2 earnings are guided between $0.64-$0.66 per share, up 45-50% year over year on strong sales growth. Recent acquisitions like CIT, Andrew, and LifeSync strengthen APH's position across key industrial markets.Amphenol (APH) shares have risen 7% over the past month, outperforming the Zacks Computer & Technology sector’s appreciation of 2.5%. The outperformance can be attributed to Amphe ...

Core Insights - Amphenol's first-quarter 2025 adjusted earnings of 63 cents per share exceeded the Zacks Consensus Estimate by 21.15%, marking a 57.5% year-over-year increase [1] - Net sales rose 47.7% year over year to $4.81 billion, surpassing the consensus mark by 13.93%, with organic growth contributing 33% [1][2] Financial Performance - The IT datacom sector drove strong organic growth, alongside gains in mobile devices, defense, and communications network markets, supported by strategic acquisitions [2] - Harsh Environment Solutions accounted for 26.4% of net sales, generating $1.27 billion, up 38.4% year over year; Communications Solutions, 50.2% of net sales, reached $2.41 billion, increasing 90.7% year over year; Interconnect and Sensor Systems Solutions, 23.5% of net sales, reported $1.13 billion, up 5.1% year over year [3] - Gross margin expanded 70 basis points year over year to 34.2%, while selling, general and administrative expenses decreased by 50 basis points to 12% [3][4] - Adjusted operating margin improved by 240 basis points year over year to 23.5% [4] Balance Sheet & Cash Flow - As of March 31, 2025, cash and cash equivalents were $1.67 billion, down from $3.34 billion at the end of 2024; total debt increased to $7.17 billion from $6.89 billion [5] - In Q1, the company repurchased 2.7 million shares for $180.9 million and paid dividends of $200 million; cash generated from operations was $764.9 million, down from $847.1 million in the previous quarter [5][6] - Non-GAAP free cash flow was $580.4 million, a decrease from $648 million in the prior quarter [6] Q2 Guidance - For Q2 2025, Amphenol expects earnings between 64 cents and 66 cents per share, indicating year-over-year growth of 45% to 50%; sales are anticipated between $4.90 billion and $5.00 billion, suggesting growth of 36% to 39% [7] - The Zacks Consensus Estimate for Q2 2025 sales is $4.54 billion, indicating a 25.87% year-over-year increase, with earnings estimated at 55 cents per share, reflecting 27.91% year-over-year growth [8]