SCHAFFHAUSEN, Switzerland - TE Connectivity Ltd. (NYSE: NYSE:TEL), a global industrial technology leader, reported its fiscal third-quarter results, surpassing earnings expectations while meeting revenue guidance despite facing a challenging market environment.
The company reported adjusted earnings per share (EPS) of $1.91, which was $0.05 higher than the analyst consensus of $1.86. Revenue for the quarter was in line with guidance at $3.98 billion, slightly below the consensus estimate of $4.02 billion.
The company's stock saw a modest increase of +0.7% following the announcement, indicating a positive but restrained investor response to the earnings beat. TE Connectivity's results were achieved against a backdrop of margin expansion and record cash flow generation, despite a 1% decline in reported revenue YoY.
CEO Terrence Curtin highlighted the company's operational performance, stating, "I'm pleased that our team continued to navigate a dynamic market environment to deliver another strong quarter of performance, highlighted by operating margin expansion of 200 basis points, delivering EPS above guidance and record cash flow generation."
Curtin also noted the growth in the automotive business and significant sales growth in the Communications segment, driven by momentum in artificial intelligence programs.
Looking ahead to the fourth quarter of fiscal 2024, TE Connectivity anticipates adjusted EPS of approximately $1.94, which is slightly above the analyst consensus of $1.93. The company expects revenue to be around $4 billion, falling short of the consensus estimate of $4.11 billion. The guidance includes a $0.10 headwind from tax and currency exchange rates.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.