Data Center
Amphenol Reports Strong Q2 on 133% Datacom Growth
Amphenol reported a strong Q2 beat with revenue of $5.65 billion coming in far ahead of its guidance for $4.9 billion to $5.0 billion, riding a second consecutive quarter of 133% YoY growth in IT datacom. Its Communications segment also helped drive stronger operating margin expansion, which flowed through to the bottom line with an impressive 28% GAAP EPS beat versus estimates. However, Amphenol stated that they shipped substantially more than expected in datacom in Q2, essentially pulling forward some demand into the quarter and reducing Q3’s sales. Analysts placed this pull-forward effect at ~$150 million, which management confirmed as an accurate rough estimate for the impact. This is likely the primary factor behind Q3’s guidance for a QoQ decline in revenue, which is not typical for Amphenol.
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