Earnings Preview: Amphenol

Amphenol (APH) is expected to report Q3 earnings before market open Thursday Oct. 16 with a conference call scheduled for 1:00 pm ET.

Guidance

The consensus estimate is 60c for EPS and $834.95M for revenue, according to First Call.

Analyst Views

Collins Stewart believes Amphenol will meet its sales estimate of $830M and pro forma EPS projection of 60c. However, the firm expects Amphenol to provide a more conservative outlook for Q4 as the credit crisis is impacting tech demand trends and a negative Forex impact.

Deutsche Bank believes Amphenol will report Q3 in-line with its 59c estimate and at the low-end of management's guidance of 59c to 61c. Looking forward for Q4, Deutsche expects the company to guide for 60c to 62c, versus its recently trimmed estimate of 59c. The 59c estimate assumes that Q4 sales decline 1% QoQ vs normal seasonality of 5% to 8%. First Call consensus for Q4 is 62c and $850.76M.

Citigroup said that given the demand environment, the firm thinks it is prudent that Amphenol will not guide sales above consensus.

Key Focus: An update to CY08 sales outlook of +15% to +16%; details on aerospace product wins at Airbus (380) and when it will start to gain traction in 2008; details on the company's focus on military that carries higher margins; commentary on raw material prices (9aluminum, copper, and gold = 35% of Cost of goods sold - COGS)); and any details on the acquisition pipeline.