TE Connectivity Ltd. Third Quarter Earnings Sneak Peek

TE Connectivity Ltd. (NYSE:TEL) will unveil its latest earnings on Wednesday, July 20, 2011. TE Connectivity Ltd. is a provider of engineered electronic components, network solutions, specialty products, and subsea communication systems.

TE Connectivity Ltd. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 71 cents per share, a rise of 1.4% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 81 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 71 cents during the last month. For the year, analysts are projecting net income of $3.01 per share, a rise of 18.5% from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the second quarter, the company reported profit of 71 cents per share versus a mean estimate of net income of 72 cents per share. In first quarter, the company beat estimates by 5 cents.

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Wall St. Revenue Expectations: On average, analysts predict $3.56 billion in revenue this quarter, a rise of 15.6% from the year ago quarter. Analysts are forecasting total revenue of $14.11 billion for the year, a rise of 16.9% from last year’s revenue of $12.07 billion.

Analyst Ratings: Analysts are bullish on this stock with six analysts rating it as a buy, one rating it as a sell and one rating it as a hold.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 16.8%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 23% from the year earlier quarter.

The company’s gross margin shrank by 2.3 percentage points in the in the second quarter. Revenue rose 17.4% while cost of sales rose 21.5% to $2.43 billion from a year earlier.

Competitors to Watch: Molex Incorporated (NASDAQ:MOLX), Amphenol Corporation (NYSE:APH), Thomas & Betts Corporation (NYSE:TNB), AVX Corporation (NYSE:AVX), Spectrum Control, Inc. (NASDAQ:SPEC), Methode Electronics Inc. (NYSE:MEI), Littelfuse, Inc. (NASDAQ:LFUS), Corning Incorporated (NYSE:GLW), and Cablitec Holding AG (NYSE:GNI).

Stock Price Performance: During July 8, 2011 to July 14, 2011, the stock price had dropped $2.45 (-6.5%) from $37.73 to $35.28. The stock price saw one of its best stretches over the last year between February 3, 2011 and February 11, 2011 when shares rose for seven-straight days, rising 5.3% (+$1.92) over that span. It saw one of its worst periods between November 8, 2010 and November 17, 2010 when shares fell for eight-straight days, falling 8.2% (-$2.71) over that span. Shares are up 21 cents (+0.6%) year to date.

(Source: Xignite Financials)

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