TE Connectivity
The 10-second takeaway
For the quarter ended March 29 (Q2), TE Connectivity met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. Non-GAAP earnings per share grew. GAAP earnings per share increased.
Margins grew across the board.
Revenue details
TE Connectivity reported revenue of $3.27 billion. The eight analysts polled by S&P Capital IQ looked for a top line of $3.27 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 10 earnings estimates compiled by S&P Capital IQ averaged $0.71 per share. Non-GAAP EPS of $0.76 for Q2 were 12% higher than the prior-year quarter's $0.68 per share. (The prior-year quarter included -$0.02 per share in earnings from discontinued operations.) GAAP EPS of $0.66 for Q2 were 10% higher than the prior-year quarter's $0.60 per share. (The prior-year quarter included -$0.02 per share in earnings from discontinued operations.)
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 32.2%, 80 basis points better than the prior-year quarter. Operating margin was 13.6%, 60 basis points better than the prior-year quarter. Net margin was 8.5%, 60 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Looking ahead
Next quarter's average estimate for revenue is $3.53 billion. On the bottom line, the average EPS estimate is $0.87.
Next year's average estimate for revenue is $13.45 billion. The average EPS estimate is $3.12.
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 $43.56.
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