Analysts Financial Report on Amphenol Corporation Annual Report (NYSE: APH)
Amphenol Corporation (NYSE: APH) has just released its latest annual results and things are looking upbeat. Overall results were good, with revenue exceeding analysts’ forecast by 2.4% to reach $ 8.6 billion. Statutory earnings per share (EPS) stood at US $ 3.91, 3.1% above analyst expectations. Analysts typically update their forecasts with each earnings report, and we can judge from their estimates whether their view of the business has changed or whether there are new concerns to consider. We put together the most recent statutory forecast to see if analysts have changed their earnings models as a result of these results.
Following the latest results, Amphenol’s 14 analysts now forecast sales of US $ 9.13 billion in 2021. This would be a modest 6.2% improvement in sales from the last 12 month. Statutory earnings per share are expected to increase 6.6% to US $ 4.31. However, before the latest results, analysts were forecasting revenues of $ 9.08 billion and earnings per share (EPS) of $ 4.31 in 2021. Consensus analysts do not seem to have seen in these results whatever. it would have changed their point of view. on the company, given that there have been no major changes in their estimates.
So it should come as no surprise to learn that the consensus price target is largely unchanged at US $ 139. Sticking to a single price target can be unwise, however, as the consensus target is actually the average of analysts’ price targets. As a result, some investors like to look at the range of estimates to see if there are any differing opinions on the valuation of the company. There are a few variations of perceptions on Amphenol, with the most bullish analyst valuing it at US $ 157 and the most bearish at US $ 105 per share. Analysts certainly have differing views on the company, but the dispersion of the estimates is not wide enough in our view to suggest that extreme results may lie ahead for Amphenol shareholders.
Looking at the big picture now, one of the ways we can make sense of these forecasts is to see how they stack up against both past performance and industry growth estimates. It’s pretty clear that Amphenol’s revenue growth is expected to slow significantly, with next year’s revenue expected to increase by 6.2%, compared to a historic growth rate of 8.7%. over the past five years. Juxtapose that with other industry companies covered by analysts, which are expected to increase their revenues (in total) by 7.4% next year. Taking into account the expected slowdown in growth, it looks like Amphenol is expected to grow at roughly the same rate as the industry as a whole.
The bottom line
The most obvious conclusion is that there has been no major change in the outlook for the company lately, with analysts keeping their earnings forecasts stable, in line with previous estimates. They also reconfirmed their revenue estimates, with the company expected to grow at roughly the same rate as the industry as a whole. The consensus price target has not really changed, suggesting that the intrinsic value of the company has not undergone any major changes with the latest estimates.
With this in mind, we still believe that the long-term trajectory of the company is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Amphenol through 2024, and you can see them for free on our platform here..
However, before you get too excited, we’ve found out 2 warning signs for Amphenol that you need to be aware of.
This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell any stock and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
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