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TE Connectivity (TEL) Q3 Earnings Beat on Strong Sales

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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.

TE Connectivity, a market leader in the connectivity and sensor business, is armed with a comprehensive portfolio that supplements its strength. For the past five years, the company’s harsh business applications have been experiencing mid-single digit growth, bolstering revenues.

Over the past year, strategic acquisitions gave TE Connectivity a leading position in solutions for the minimally-invasive medical market, fortified its portfolio of industrial connectors and bolstered the company’s offering of sensors for the auto market. These factors are expected to drive long-term growth of the company.

TEL has a robust earnings surprise record, having delivered an average earnings surprise of 8.9% in the last four trailing quarters, beating estimates all through.

TE Connectivity Ltd. Price, Consensus and EPS Surprise

Currently, TEL has a Zacks Rank #2 (Buy), but that could change following its third-quarter fiscal 2017 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 $1.24, significantly ahead of the Zacks Consensus Estimate of $1.17.

Revenue: Revenues of $3,367 million surpassed the Zacks Consensus Estimate of $3,251 million.

Key Stats: TEL recorded an impressive 12% year-over-year growth in orders, which came in at $3.3 billion. Concurrent with the fiscal third-quarter 2017 earnings release, the company once again raised its fiscal 2017 earnings and revenue guidance. It now expects net sales in the range of $12.85-$12.95 billion, compared to the earlier range of $12.60-$12.80 billion. Adjusted earnings per share are projected in the band of $4.72 to $4.74, compared to the earlier guidance of $4.58 to $4.66.

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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