(Reuters) -Electronics equipment maker Amphenol forecast second quarter results above Wall Street estimates on Wednesday, betting on growing demand in data communications and defense markets, sending its shares up 12% in premarket trading.
Growing adoption of generative artificial intelligence technologies across businesses has boosted demand for tools offered by companies such as Amphenol.
The company makes interconnect systems, sensors and antennas used in automotive, industrial, defense and other sectors. Its customers include cloud and data center providers, chipmakers and other technology companies.
The company also reported record sales in the first quarter, an increase of 48% from a year ago, driven by growth in data communication, mobile devices, defense and the company’s acquisitions, CEO R. Adam Norwitt said.
Amphenol bought CommScope’s Outdoor Wireless Networks and Distributed Antenna Systems businesses in February. Last year, it had acquired Carlisle Interconnect Technologies, a unit of Carlisle Companies, for about $2 billion in cash.
Despite the upbeat result and forecast, the company said economic and geopolitical environment remains uncertain.
In April, U.S. President Donald Trump raised baseline tariffs on Chinese imports to 145% and deepened the trade war. In retaliation, China has imposed a 125% tariff on U.S. goods.
About 22% of Amphenol’s net sales in 2024 were from China.
The company expects second-quarter sales between $4.90 billion and $5.00 billion, a growth of 36% to 39% from a year ago. Analysts expected $4.58 billion, according to data compiled by LSEG.
Adjusted profit per share is expected to be in the range of 64 cents to 66 cents, compared with estimates of 55 cents per share.
First quarter sales were $4.8 billion, compared with estimates of $4.23 billion. Its adjusted earnings of 63 cents per share beat estimates of 52 cents per share.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Sahal Muhammed)
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