What Happened?
Shares of electrical connector manufacturer Amphenol (NYSE: APH) jumped 5.6% in the afternoon session after the company reported strong third-quarter 2025 earnings, raised its forward guidance, and announced a significant dividend increase.
The electrical connector maker's revenue grew by about 53% year-over-year to $6.19 billion, while net profit more than doubled with a 106% increase. These results beat what analysts were expecting, with adjusted earnings per share coming in 16.5% above consensus estimates. Looking ahead, the company also provided revenue guidance for the next quarter that was 6.1% higher than analysts had predicted. Adding to the good news for shareholders, Amphenol increased its quarterly dividend by 52% to $0.25 per share. Following the strong report, Citigroup kept its "Buy" rating on the stock and raised its price target to $160 from $145.
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What Is The Market Telling Us
Amphenol’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 13 days ago when the stock dropped 2.6% on the news that President Trump threatened a 'massive increase in tariffs' on Chinese imports, reigniting fears of a renewed US-China trade war.
The unexpected comments, made in response to Beijing's plans to tighten export controls on rare-earth minerals, reversed early market gains and sent major indices tumbling. Rare-earth minerals are crucial for components used in the electronics and automotive industries. The tech sector led the losses, with the tech-rich Nasdaq Composite falling 1.7%. The threat jolted Wall Street, sparking concerns that escalating trade tensions could disrupt global supply chains and increase costs for many technology companies that rely on components or manufacturing from China.
Amphenol is up 96.9% since the beginning of the year, and at $135.91 per share, has set a new 52-week high. Investors who bought $1,000 worth of Amphenol’s shares 5 years ago would now be looking at an investment worth $4,540.
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