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TE Connectivity (TEL) Q4 Earnings Surpass Estimates

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TE Connectivity Ltd. (TEL - Free Report) primarily manufactures and designs products that connect and protect the flow of power and data inside millions of products used by consumers and industries. The company partners with customers in a broad array of industries ranging from consumer electronics, energy, and healthcare to automotive, aerospace and communication networks.

TEL remains optimistic regarding its strong foothold in the connectivity and sensors market, especially in relation to harsh environment solutions, in which the company clearly bears a competitive edge over its peers. Also, expansion in the company’s transportation segment & SubCom business along with the recent Creganna acquisition will prove to be strong growth drivers in coming times.

However, as TEL’s major portion of net sales is invoiced in currencies other than the U.S. dollar, it has been impacted by foreign currency fluctuations from the past few quarters. Additionally, TE Connectivity is incurring huge restructuring charges, which will push up costs and hurt margins in the near term.

TEL has a decent earnings surprise record, having delivered an average earnings surprise of 3.1% in the last four trailing quarters, with three beats and one miss.

TE CONNECT-LTD Price and EPS Surprise

 

Currently, TEL has a Zacks Rank #4 (Sell), but that could change following its fourth-quarter fiscal 2016 earnings report which has just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

We have highlighted some of the key details from the announcement below:

Earnings: TEL beats on earnings. Adjusted earnings per share for the quarter came in at $1.27, significantly ahead of the Zacks Consensus Estimate of $1.19.

Revenue: Revenues of $3,332 million marginally lagged the Zacks Consensus Estimate of $3,346 million.

Key Stats: TEL posted strong earnings and revenue growth, driven by excellent performance in its harsh environment businesses. The company expanded its harsh environment portfolio even further with the acquisition of Intercontec.

Stock Price: TEL shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.

Check back for our full write up on this TEL earnings report later!

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