Rising costs did not help TE Connectivity Ltd. (NYSE:TEL) in the most recent quarter as profit dropped from a year earlier. TE Connectivity Ltd. is a provider of engineered electronic components, network solutions, specialty products, and subsea communication systems.
TE Connectivity Earnings Cheat Sheet for the Second Quarter
Results: Net income for TE Connectivity Ltd. fell to $300 million (67 cents/share) vs. $304 million (66 cents/share) a year earlier. A decline of 1.3% from the year earlier quarter.
Revenue: Rose 17.4% to $3.47 billion YoY.
Actual vs. Wall St. Expectations: TEL (NYSE:TEL) fell short of the mean analyst estimate of 72 cents/share. Estimates ranged from 70 cents per share to 74 cents per share.
Quoting Management: “Our second quarter overall was solid with double-digit sales and adjusted earnings growth versus the prior year and continued orders growth in most of our markets, especially automotive, industrial and telecom networks,” said TE Connectivity Chief Executive Officer Tom Lynch. “In addition, the benefits of the ADC acquisition began to materialize during the quarter as sales and earnings were on track and we were awarded a $400 million contract to supply network connectivity products for the Australian government’s National Broadband Network.”
Key Stats: The company has enjoyed double-digit year-over-year revenue growth for the past five quarters. Over that span, the company has averaged growth of 17.5%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 23% from the year earlier quarter.
Competitors to Watch: Alcatel-Lucent (NYSE:ALU), Nokia (NYSE:NOK), Cisco (NASDAQ:CSCO), Ciena (NASDAQ:CIEN), Siemens (NYSE:SI), Juniper (NYSE:JNPR), Motorola Solutions (NYSE:MSI), Corning Inc. (NYSE:GLW), and Molex Inc. (NASDAQ:MOLX).
Today’s Performance: Shares of TEL closed at $35 per share: