TE Connectivity Q3 Profit Beats Estimates; Reduces Full Year Guidance

(RTTNews) - TE Connectivity Ltd. (TEL) reported third quarter income from continuing operations of $351 million, compared to $347 million, last year. EPS from continuing operations were $0.85, compared to $0.83. The company noted that its GAAP EPS included $19 million of acquisition related charges, restructuring and other charges, and tax items. Adjusted EPS from continuing operations were $0.90, for the quarter.

On average, 12 analysts polled by Thomson Reuters expected the company to report profit per share of $0.88 for the quarter. Analysts' estimates typically exclude special items.

Net sales were $3.12 billion, compared to $3.08 billion, up 1 percent from the prior year and up 4 percent organically. Analysts expected revenue of $3.18 billion for the quarter.

For the fourth quarter 2015, the company expects net sales of $3.02 billion to $3.18 billion, reflecting 1 percent actual and 3 percent organic year over year growth at the mid-point, and adjusted EPS of $0.90 to $0.96, which represents 6 percent growth at the mid-point. GAAP EPS are expected to be $0.81 to $0.87. Analysts expect the company to report fourth-quarter earnings per share of $0.99 on revenue of $3.20 billion.

For the full year, the company has reduced guidance, primarily due to slowdown in China, and expects net sales of $12.28 to $12.42 billion, reflecting 3 percent actual and 5 percent organic growth versus prior year at the mid-point; and adjusted EPS of $3.60 to $3.66 reflecting double-digit growth versus the prior year. GAAP EPS are expected to be $3.48 to $3.54. Analysts expect the company to report full year earnings per share of $3.68 on revenue of $12.51 billion.