The 10-second takeaway
For the quarter ended June 28 (Q3), TE Connectivity beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly. Non-GAAP earnings per share grew. GAAP earnings per share grew significantly.
Margins expanded across the board.
TE Connectivity chalked up revenue of $3.45 billion. The eight analysts polled by S&P Capital IQ expected to see a top line of $3.39 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 came in at $0.88. The 10 earnings estimates compiled by S&P Capital IQ predicted $0.83 per share. Non-GAAP EPS of $0.88 for Q3 were 11% higher than the prior-year quarter's $0.79 per share. (The prior-year quarter included -$0.14 per share in earnings from discontinued operations.) GAAP EPS of $0.80 for Q3 were 74% higher than the prior-year quarter's $0.46 per share. (The prior-year quarter included -$0.14 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 32.8%, 370 basis points better than the prior-year quarter. Operating margin was 12.8%, 70 basis points better than the prior-year quarter. Net margin was 9.7%, 400 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $3.47 billion. On the bottom line, the average EPS estimate is $0.92.
Next year's average estimate for revenue is $13.28 billion. The average EPS estimate is $3.16.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TE Connectivity is outperform, with an average price target of $46.90.
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