TE Connectivity Beats Analyst Estimates on EPS
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.
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.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
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.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
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.
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.
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 this article 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.