The 10-second takeaway
For the quarter ended Dec. 28 (Q1), TE Connectivity missed estimates on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share grew.
Margins increased across the board.
TE Connectivity notched revenue of $3.13 billion. The nine analysts polled by S&P Capital IQ wanted to see sales of $3.21 billion on the same basis. GAAP reported sales were 1.1% lower than the prior-year quarter's $3.17 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.65. The 10 earnings estimates compiled by S&P Capital IQ anticipated $0.64 per share. GAAP EPS of $0.65 for Q1 were 8.3% higher than the prior-year quarter's $0.60 per share. (The prior-year quarter included $0.05 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 31.6%, 190 basis points better than the prior-year quarter. Operating margin was 12.4%, 30 basis points better than the prior-year quarter. Net margin was 8.8%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.36 billion. On the bottom line, the average EPS estimate is $0.75.
Next year's average estimate for revenue is $13.69 billion. The average EPS estimate is $3.19.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TE Connectivity is outperform, with an average price target of $39.45.
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