TE Connectivity Fourth Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component TE Connectivity (NYSE:TEL) will unveil its latest earnings on Monday, November 5, 2012. TE Connectivity is a provider of engineered electronic components, network solutions, specialty products and communication systems.

TE Connectivity Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 74 cents per share, a decline of 16.9% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 9% compared to last year’s $2.84.

Past Earnings Performance: Last quarter, the company met expectations by reporting profit of 79 cents per share last quarter. In the previous second quarter, the company beat estimates by 3 cents.

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A Look Back: In the third quarter, profit fell 43.9% to $199 million (46 cents a share) from $355 million (80 cents a share) the year earlier, meeting analyst expectations. Revenue fell 6.2% to $3.5 billion from $3.73 billion.

Wall St. Revenue Expectations: Analysts predict a decline of 13.3% in revenue from the year-earlier quarter to $3.39 billion.

Stock Price Performance: Between September 4, 2012 and October 30, 2012, the stock price had fallen $2.78 (-7.9%), from $35 to $32.22. The stock price saw one of its best stretches over the last year between December 30, 2011 and January 12, 2012, when shares rose for nine straight days, increasing 12.6% (+$3.88) over that span. It saw one of its worst periods between April 26, 2012 and May 18, 2012 when shares fell for 17 straight days, dropping 16.7% (-$6.13) over that span.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 6.4% in the second quarter and dropped again in the third quarter.

Analyst Ratings: With nine analysts rating the stock a buy, none rating it a sell and one rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.58 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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