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TE Connectivity Beats Q3 Aided By Broad Growth Across Segments

Benzinga · 07/27/2022 11:28
  • TE Connectivity Ltd (NYSE:TELreported third-quarter FY22 net sales growth of 7% year-on-year to $4.1 billion, beating the consensus of $3.9 billion.
  • Orders of $4.2 billion with a book-to-bill of 1.02 and backlog up more than 20% year over year, reflecting continued strong customer demand.
  • Revenue from Transportation Solutions rose 1.5% Y/Y to $2.3 billion, Industrial Solutions increased 13.2% Y/Y to $1.13 billion, and Communications Solutions grew 14.7% Y/Y to $663 million.
  • Margin: The non-GAAP operating margin contracted 50 basis points to 18.6%.
  • The non-GAAP EPS of $1.86 beat the consensus of $1.75.
  • TE Connectivity generated $579 million in operating cash flow and held $820 million in cash and equivalents.
  • CEO Terrence Curtin said, "We saw broad growth across all segments, with every one of our businesses growing organically, demonstrating the strength and strategic positioning of our portfolio as we consistently expand our leadership in long-term growth and sustainability trends including electric vehicles, cloud computing, factory automation, and renewable energy."
  • Outlook: TEL sees Q4 net sales of $4.2 billion, above the consensus of $4.01 billion, and non-GAAP EPS of $1.85, above the consensus of $1.81.
  • Price Action: TEL shares traded higher by 2.07% at $125.60 on the last check Wednesday.