Charting TE Connectivity's Latest Earnings Release

Seth Jayson, The Motley Fool
Updated

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

The 10-second takeaway
For the quarter ended June 29 (Q3), TE Connectivity missed slightly on revenues and met expectations on earnings per share.

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


Margins shrank across the board.

Revenue details
TE Connectivity logged revenue of $3.50 billion. The 10 analysts polled by S&P Capital IQ predicted sales of $3.55 billion on the same basis. GAAP reported sales were 6.2% lower than the prior-year quarter's $3.73 billion.

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

EPS details
EPS came in at $0.79. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.78 per share. GAAP EPS of $0.46 for Q3 were 43% lower than the prior-year quarter's $0.80 per share.

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 29.1%, 110 basis points worse than the prior-year quarter. Operating margin was 12.1%, 90 basis points worse than the prior-year quarter. Net margin was 5.7%, 380 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $3.51 billion. On the bottom line, the average EPS estimate is $0.78.

Next year's average estimate for revenue is $13.46 billion. The average EPS estimate is $2.87.

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 $40.67.

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The article Charting TE Connectivity's Latest Earnings Release originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is 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 may not 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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