TE Connectivity beats market forecast in the fiscal first quarter  


Last week, Swiss components company TE Connectivity announced its earnings for FQ1 2020. For the fourth consecutive quarter, the firm managed to outpace market analyst forecasts of its financial performance. In fact, the company, which makes ruggedized connectors and sensors, did so well in the fiscal first quarter, it revised its full-year net sales projection up by 3 percent.

TE Connectivity’s Fiscal First Quarter Earnings

In the period ending December 27, TE Connectivity generated $3.168 billion in revenue. As such, the firm’s sales fell by 5.34 percent year-over-year but rose by 1 percent from last quarter. In addition, the manufacturer posted earnings per share of $1.21, beating Zacks Investment Research’s estimate of $1.14 per share.

Indeed, TE Connectivity’s fiscal first-quarter income outperformed even the high end of its guidance.

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Notably, the components company has seen its shares grow in value by 2.4 percent since January 1. In comparison, the S & P index has only produced gains of 1.4 percent during the same timeframe. In an earnings call, TE Connectivity CEO Terrence Curtin attributed his firms better than expected performance to robust sales of its industrial sensors.

The executive also noted his company’s automotive business has improved due to the increasing popularity of electric and connected vehicles.

TE Connectivity Updated Guidance

In addition to detailing its fiscal first-quarter performance, TE Connectivity also updated its full-year financial guidance.

Previously, the manufacturer projected that it would sell $12.85 billion in components through 2020. Now, the firm believes it will generate $13.25 billion in revenue by the end of this year. Moreover, the company adjusted its estimated annual diluted earnings per share from $3.23 to $3.58. The firm also offered revised guidance of $5.25 in adjusted earnings per share, up 6 percent from its previous prediction.

Besides, TE Connectivity offered updated guidance for its performance in the fiscal second quarter. The company now estimates it will generate $3.3 billion in sales in FQ2 2020, an increase of 6.45 percent. Also, the manufacturer expects its diluted earnings per share of $1.11, up from a previous forecast of $1.05. Moreover, the company predicts adjusted earnings per share of $1.28, exceeding its erstwhile projection of $1.22.

Given the quality of its connectors and sensors and the increasing ubiquity of interlinked systems, TE Connectivity should continue to defy market expectations for many more quarters to come.


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