TE Connectivity
The 10-second takeaway
For the quarter ended Sep. 28 (Q4), TE Connectivity met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins dropped, net margins grew.
Revenue details
TE Connectivity logged revenue of $3.36 billion. The 10 analysts polled by S&P Capital IQ foresaw revenue of $3.38 billion on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $3.91 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 $0.76. The 12 earnings estimates compiled by S&P Capital IQ predicted $0.74 per share. GAAP EPS of $0.93 for Q4 were 22% higher than the prior-year quarter's $0.76 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 31.6%, 90 basis points worse than the prior-year quarter. Operating margin was 13.3%, 180 basis points worse than the prior-year quarter. Net margin was 11.8%, 350 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $3.40 billion. On the bottom line, the average EPS estimate is $0.75.
Next year's average estimate for revenue is $14.17 billion. The average EPS estimate is $3.31.
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 $39.83.
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