Amphenol Corporation (NYSE:APH) stock rose 0.58% (As on July 25, 11:20:00 AM UTC-4, Source: Google Finance) after the company forecast third-quarter revenue below market estimates, as customers across broadband and industrial markets scale back on spending in the face of high borrowing costs. Harsh Environment Solutions’ (29% of net sales) sales came in at $1.05 billion, up 17.7% from the year-ago quarter’s levels. Communications Solutions’ (40% of net sales) sales were $1.44 billion, which increased 24.4% year over year. Interconnect and Sensor Systems Solutions’ (31% of net sales) sales were $1.12 billion, up 11.5% year over year. As of Jun 30, 2024, Amphenol had cash and cash equivalents worth $1.3 billion, up from $1.96 billion as of Mar 31, 2024. Total debt was $3.86 billion as of Jun 30, 2024, compared with $4.31 billion as of Mar 31, 2024.

Moreover, Amphenol closed the acquisition of Carlisle Interconnect Technologies (CIT) on May 21, as previously announced. During the quarter, Amphenol also signed a definitive agreement to acquire Lutze, a leading provider of harsh environment cable and cable assembly solutions for high-technology applications in the industrial market. The acquisition includes two businesses: Lutze US, based in North Carolina, and Lutze Europe, based in Germany. In May, the company closed on Lutze US, which has annual sales of approximately $75 million, and the company expects to close on Lutze Europe, which has annual sales of approximately $100 million, by the end of the third quarter of 2024. Both the CIT and Lutze businesses are reported in the Harsh Environment Solutions segment.

APH in the second quarter of FY 24 has reported the adjusted earnings per share of 43 cents, beating the analysts’ estimates for the adjusted earnings per share by 4.88%. The company had reported the adjusted revenue growth of 18.2 percent to $3.61 billion in the second quarter of FY 24, beating the analysts’ estimates for revenue of $3.4 billion.

Amphenol’s board approved a 50% rise in quarterly dividend to 16 cents from 11 cents, which will be paid on Oct. 9. During the quarter, the company purchased 3.1 million shares for $190 million. It also paid dividends of $132 million

Amphenol forecast third-quarter revenue in the range of $3.70 billion to $3.80 billion, the mid-point of which is below analysts’ expectations of $3.71 billion, according to LSEG data. On an adjusted basis, Amphenol expects profit in the range of 43 cents to 45 cents, the mid-point of which is in line with analysts’ estimates.