TE Connectivity Shares Sank: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of TE Connectivity (NYS: TEL) have sunk today by as much as 14% after the company announced first -quarter earnings, but are climbing higher as they recover.
So what: Revenue added up to $3.3 billion, with adjusted earnings per share of $0.66. Both results were shy of consensus estimates, which called for over $3.4 billion in sales and a $0.70 per share profit.
Now what: CEO Tom Lynch acknowledged that the company faced lower sales volume due to pricing and cost reduction actions it implemented late last year. Much of the drop can also be attributed to soft forward-looking guidance, as second-quarter profit is expected between $0.64 and $0.68 per share, short of the $0.76 per share that the Street is looking for. Full-year 2012 earnings should be between $2.90 and $3.10, also lower than the $3.27 expectation.
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