TE Connectivity meets guidance, updates forecast

Component supplier TE Connectivity said its December fiscal quarter sales and earnings exceeded forecast guidance.
Component supplier TE Connectivity said its December fiscal quarter sales and earnings exceeded forecast guidance. (TE Connectivity)

For its first fiscal 2020 fiscal quarter ended December 27, 2019, TE Connectivity posted net sales of $3.2 billion with adjusted earnings per share of $1.21, both exceeding the company’s projected guidance.

TE Connectivity recorded cash flow from continuing operating activities of $411 million and free cash flow of $243 million. Total orders were $3.2 billion, up 1% sequentially, and the book-to-bill ratio was 1.02.

"I'm pleased with our performance in the first quarter where we delivered sales and adjusted earnings per share above our expectations and generated strong cash flow in what continues to be a challenging market environment," said Terrence Curtin, chief executive officer of TE Connectivity, in a statement. "Our Industrial segment grew ahead of guidance driven by strength in our defense, medical, aerospace and energy businesses, while our Transportation segment continued to outperform auto production declines due to our strong content position in the long-term growth trends of electric and connected vehicles.”

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The company has updated full year guidance to net sales expectations of $12.85 to $13.25 billion, reflecting 3% actual and 2% organic decline at the mid-point versus the prior year. Diluted EPS from continuing operations are expected to be $3.23 to $3.53, including net restructuring, acquisition-related and other charges of $0.66 and a tax-related charge of $1.06. The company expects adjusted EPS of $4.95 to $5.25.

For the fiscal second quarter of 2020, the company expects net sales of $3.1 billion to $3.3 billion, reflecting a decrease of 6% on an actual basis and 5% on an organic basis year over year at the mid-point. Diluted EPS from continuing operations are expected to be $1.05 to $1.11, including net restructuring, acquisition-related and other charges of $0.17. 

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