(Reuters) – Electronic components maker Amphenol forecast third-quarter revenue above market estimates on Wednesday on optimism over demand from commercial air, military and automotive markets, sending its shares up more than 3% in early trading.
The company expects third-quarter sales to be between $3.04 billion and $3.10 billion, while analysts estimated $3.09 billion, according to Refinitiv. Its profit forecast of 72 cents to 74 cents per share was in line with analysts’ estimates.
Companies involved in the defense industry have in the past year benefited from higher spending in next-generation technologies by nations across the globe amid mounting geopolitical tensions.
That has helped Amphenol cushion a decline in demand from the consumer electronics market, which came under pressure due to lower spending on devices such as laptops and tablets.
Amphenol, which manufactures products including sensors, antennas, cables and connectors, posted revenue of $3.05 billion for the second quarter ended June 30, compared with estimates of $2.95 billion.
Its profit came in at 72 cents per share, higher than expectations of 68 cents.
During the pandemic, some of Amphenol’s products were used in equipment like ventilators, thermometers and monitoring assets used by the pharmaceutical industry to develop COVID-19 vaccines.
(Reporting by Jaspreet Singh in Bengaluru; Editing by Shinjini Ganguli)
