TE Connectivity Little Changed Following Better-Than-Expected Q1, Outlook

Shares of TE Connectivity Ltd TEL were trading nearly flat on Wednesday morning after the company reported its first quarter results and offered an outlook towards the remainder of the year.

TE Connectivity reported that it earned $0.84 per share on revenue of $2.83 billion. Wall Street analysts were expecting the company to earn $0.76 per share on revenue of $2.80 billion.

"I am pleased with our first quarter performance with sales in line with guidance and EPS exceeding the high end of guidance," said TE Connectivity Chairman and CEO Tom Lynch. "Our businesses executed very well despite the uncertain macro-economic environment and continued softness in China and industrial markets. Last year's acquisitions in Sensors and Medical continued to gain momentum, and we advanced our strategy to focus on harsh environment applications with the announced sale of our Circuit Protection Devices business.

Outlook

TE Connectivity expects to earn $0.84 to $0.92 per share in the second quarter on revenue of $2.88 billion to $3.08 billion.

Wall Street analysts were estimating the company to earn $0.91 per share on revenue of $2.95 billion in the second quarter.

Looking forward to the full fiscal year, Lynch noted in the press release that continued strength in the Transportation segment will offset weakness in industrial markets and softness in China.

However, the executive added that the industrial market is expected to pick up in the bottom half of fiscal 2016 as inventory levels stabilize and orders continue to improve.

For the full fiscal year, TE Connectivity expects net sales to fall in a range of $11.9 billion to $12.7 billion and adjusted EPS of $3.80 to $4.20.