(Reuters) – Electronic equipment maker Amphenol on Wednesday reported fourth-quarter sales and profit above estimates, bolstered by strong demand for its sensors and connectors from sectors including data communications and defense.
The Wallingford, Connecticut-based company’s shares rose 2.5% in early trading.
Businesses eager to adopt artificial intelligence technologies, as well as governments boosting their defense budgets in response to rising geopolitical tensions, are driving demand for the company’s connectors and sensors.
Amphenol makes interconnect systems, sensors and antennas used in automotive, industrial, defense and other sectors. In 2023, the IT and data communications segment made up about 39% of the firm’s total sales, while the interconnect and sensor systems represented roughly 33%.
Its revenue has also received a big boost from a series of acquisitions over the past year, including a $2 billion deal for a unit of Carlisle Companies that supplies cables and connectors to defense and industrial sectors.
The purchases have helped Amphenol diversify its portfolio and tap into new markets.
“We have expanded our range of high-technology interconnect products, both through our organic innovation efforts as well as through our successful acquisition program,” CEO R. Adam Norwitt said.
The company forecast first-quarter sales between $4 billion and $4.10 billion, a growth of 23% to 26% from a year ago. Analysts expected $3.94 billion, according to data compiled by LSEG.
Amphenol’s fourth-quarter sales were $4.3 billion, compared with estimates of $4.07 billion. Its adjusted earnings of 55 cents per share beat estimates of 50 cents.
(Reporting by Kritika Lamba in Bengaluru; Edited by Sahal Muhammed)
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