TE Connectivity Beats Analyst Estimates on EPS

Seth Jayson, The Motley Fool
Updated

TE Connectivity (NYS: TEL) reported earnings on April 25. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 30 (Q2), TE Connectivity missed slightly on revenues and beat expectations on earnings per share.

Compared with the prior-year quarter, revenue dropped and GAAP earnings per share contracted.


Gross margins expanded, operating margins improved, net margins shrank.

Revenue details
TE Connectivity logged revenue of $3.25 billion. The 10 analysts polled by S&P Capital IQ expected a top line of $3.30 billion on the same basis. GAAP reported sales were 6.4% lower than the prior-year quarter's $3.47 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Non-GAAP EPS came in at $0.68. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.65 per share on the same basis. GAAP EPS of $0.60 for Q2 were 10% lower than the prior-year quarter's $0.67 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 31.4%, 50 basis points better than the prior-year quarter. Operating margin was 13.0%, 10 basis points better than the prior-year quarter. Net margin was 7.9%, 70 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $3.62 billion. On the bottom line, the average EPS estimate is $0.81.

Next year's average estimate for revenue is $13.92 billion. The average EPS estimate is $3.00.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TE Connectivity is outperform, with an average price target of $40.25.

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At the time thisarticle was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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