Baird has increased its price target for Amphenol (APH, Financial) from $73 to $85, maintaining an Outperform rating for the company. This adjustment comes after the firm's analysis of Amphenol's first-quarter results, which showcased ongoing rapid growth and robust execution. Baird's updated model reflects confidence in the company's ability to sustain its positive trajectory.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 15 analysts, the average target price for Amphenol Corp (APH, Financial) is $80.29 with a high estimate of $102.00 and a low estimate of $63.00. The average target implies an upside of 12.85% from the current price of $71.15. More detailed estimate data can be found on the Amphenol Corp (APH) Forecast page.
Based on the consensus recommendation from 19 brokerage firms, Amphenol Corp's (APH, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Amphenol Corp (APH, Financial) in one year is $64.20, suggesting a downside of 9.77% from the current price of $71.15. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Amphenol Corp (APH) Summary page.
APH Key Business Developments
Release Date: April 23, 2025
- Revenue: Record sales of $4.811 billion, up 40% in US dollars, 49% in local currencies, and 33% organically compared to Q1 2024.
- Orders: Record $5.292 billion, up 58% compared to Q1 2024, with a book-to-bill ratio of 1.1 to 1.
- GAAP Operating Income: $1.25 billion with a GAAP operating margin of 21.3%.
- Adjusted Operating Income: $1.13 billion, resulting in a record adjusted operating margin of 23.5%.
- GAAP Diluted EPS: $0.58, up 32% compared to Q1 2024.
- Adjusted Diluted EPS: $0.63, up 58% compared to $0.40 in Q1 2024.
- Operating Cash Flow: $765 million, 104% of net income.
- Free Cash Flow: $580 million, 79% of net income.
- Segment Performance:
- Harsh Environment Solutions: Sales of $1.260 billion, up 38% in US dollars, 8% organically, with a segment operating margin of 24.5%.
- Communication Solutions: Sales of $2.414 billion, up 91% in US dollars, 73% organically, with a segment operating margin of 27.4%.
- Interconnect and Sensor Systems: Sales of $1.129 billion, up 5% in US dollars, 6% organically, with a segment operating margin of 18.1%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Amphenol Corp (APH, Financial) reported record sales of $4.811 billion for Q1 2025, marking a 40% increase in US dollars and 33% organically compared to Q1 2024.
- The company achieved a record adjusted diluted EPS of $0.63, up 58% from the prior year.
- Orders reached a record $5.292 billion, resulting in a healthy book-to-bill ratio of 1.1 to 1.
- The acquisition of Andrew from CommScope is expected to add approximately $0.09 to earnings for the full year 2025.
- Amphenol Corp (APH) demonstrated strong operating cash flow of $765 million and free cash flow of $580 million, reflecting the quality of earnings.
Negative Points
- The commercial aerospace market saw a modest organic sales decline of 3% year-over-year due to moderated procurement volumes from jetliner customers.
- The automotive market experienced a slight sales decline of 2% in US dollars, with growth in North America and Asia offset by a moderation in Europe.
- Factory automation within the industrial market remains challenging, with continued declines in Europe.
- The company anticipates elevated levels of capital spending in Q2 2025 to support growth in the IT datacom market.
- Amphenol Corp (APH) faces potential impacts from tariffs, requiring strategic management to mitigate costs and pass on pricing impacts to customers.
