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.
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 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.
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.
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.
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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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 of Motley 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.