TE Connectivity Q1 Results Top Estimates, Lifts Full Year View - Update

(RTTNews) - Switzerland-based diversified electronics maker TE Connectivity Ltd. (TEL) Wednesday reported increased profit and sales for the first quarter that topped estimates. Further, the company lifted its full year forecast, citing the continued strength in the global automotive market as well as improvements in its industrial end markets.

Net income attributable to TE Connectivity increased to $353 million from $277 million in the previous year. Earnings per share advanced to $0.84 from $0.65. Adjusted earnings per share were $0.82, while it totaled $0.65 last year. On average, 12 analysts polled by Thomson Reuters expected earnings of $0.77 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales grew 6 percent to $3.326 billion from $3.134 billion in the prior year. Wall Street expected sales of $3.28 billion.

Excluding Subsea Communications, orders were up 8 percent in the first quarter to $3.32 billion. Tom Lynch, CEO, said, ''We had a strong first quarter with sales up six percent and EPS above the high end of our guidance range Sales were up in all regions led by continued momentum in our Transportation and Industrial segments. This was another quarter of strong execution with adjusted operating income up 25 percent due to sales growth and the impact of our TEOA program."

Looking ahead to the second quarter, the company expects net sales of $3.4 to $3.5 billion and adjusted earnings per share of $0.88 to $0.92. GAAP earnings per share are expected to be $0.86 to $0.90, including restructuring charges of $0.02.

Analysts look for earnings $0.89 per share on revenues of $3.41 billion.

For the year, adjusted earnings per share are expected in the range of $3.65 to $3.85. GAAP earnings per share are expected to be $3.60 to $3.80, including restructuring charges of $0.09 and income from tax-related items of $0.04.

The previous forecast was for earnings per share of $3.41 to $3.71, including restructuring charges of $0.09. The firm earlier forecast adjusted earnings per share of $3.50 to $3.80.

The company expects annual net sales of $13.8 billion to $14.2 billion, while the previous projection for fiscal year net sales was $13.65 billion to $14.15 billion.

TE said it is encouraged by the continued strength in the global automotive market, improvements in its industrial end markets and increased demand in the fiber portion of the broadband network. As a result, the company raised the midpoint of its sales and earnings guidance for the fiscal year.

At the midpoint, the firm expects sales to be $14 billion, an improvement of 5 percent organically over the prior year. Adjusted earnings per share is estimated to be $3.75, up 16 percent versus the prior year.

Wall Street looks for earnings of $3.67 per share on revenues of $13.90 billion.

TEL closed up 0.6 percent on Tuesday at $56.30.