TE Connectivity Earnings: Below Analysts’ Estimates
TE Connectivity Ltd. (NYSE:TEL) reported its results for the third quarter. TE Connectivity is a provider of engineered electronic components, network solutions, specialty products and communication systems.
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TE Connectivity Ltd. Earnings Cheat Sheet
Results: Net income for TE Connectivity Ltd. fell to $199 million (46 cents per share) vs. $355 million (80 cents per share) a year earlier. This is a decline of 43.9% from the year-earlier quarter.
Revenue: Fell 2.2% to $3.5 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: TE Connectivity Ltd. fell short of the mean analyst estimate of 79 cents per share. Analysts were expecting revenue of $3.56 billion.
Quoting Management: “We executed well in Q3 delivering EPS at our guidance level, increasing adjusted operating margins to 14% and generating free cash flow of $414 million,” said TE Connectivity Chief Executive Officer Tom Lynch. “Sales were up 8% sequentially although slightly below our expectations due to a weaker Euro and softness in our Network Solutions segment. Based on current order trends, we expect fourth quarter sales of approximately $3.4 billion with adjusted operating margins holding around 14%. We expect to generate in excess of $1.3 billion of free cash flow in fiscal 2012 and plan to restart our share repurchase program in the fourth quarter.”
The company fell short of estimates last quarter after beating the mark the quarter before with net income of 68 cents versus a mean estimate of net income of 65 cents per share.
Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from 86 cents a share to 80 cents over the last ninety days. For the fiscal year, the average estimate has moved down from $2.99 a share to $2.89 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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