Tyco Electronics Earnings: Here’s Why the Stock is Rising Now

Tyco Electronics, Ltd. (NYSE:TEL) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.16%.

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Tyco Electronics, Ltd. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 11.76% to $0.76 in the quarter versus EPS of $0.68 in the year-earlier quarter.

Revenue: Rose 0.49% to $3.27 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Tyco Electronics, Ltd. reported adjusted EPS income of $0.76 per share. By that measure, the company beat the mean analyst estimate of $0.71. It beat the average revenue estimate of $3.26 billion.

Quoting Management: “I am pleased with our overall performance this quarter,” said TE Connectivity Chairman and Chief Executive Officer Tom Lynch. “Continued strong performance in our Transportation business more than offset softness in networks markets and the impact of currency headwinds. The company generated record second quarter adjusted EPS of $0.76, exceeding the mid-point of our guidance by $0.06, and delivered $353 million in free cash flow.
“Orders were up 9 percent versus the first quarter and our book-to-bill was 1.06, excluding Subsea Communications. While economic conditions remain uncertain, we continue to expect strong sequential improvement in our second half with full year EPS growth of approximately 10 percent over the prior year.”

Key Stats (on next page)…

Revenue increased 4.18% from $3.13 billion in the previous quarter. EPS increased 16.92% from $0.65 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.88 to a profit $0.87. For the current year, the average estimate has moved down from a profit of $3.16 to a profit of $3.12 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)