TE Connectivity Beats Q4 Sales Estimates; CEO Highlights EV And AI Momentum

TE Connectivity Ltd TEL reported a fourth-quarter FY23 net sales of $4.035 billion, beating the consensus of $4.009 billion, although lower by 7.4% year-on-year.

The adjusted EPS of $1.78 beat the consensus of $1.76

Orders were $3.9 billion, with sequential growth in the Transportation and Communications segments.

Revenue from Transportation Solutions declined by 1.4% Y/Y to $2.41 billion, Industrial Solutions decreased by 6.8% Y/Y to $1.16 billion, and Communications Solutions declined by 30.7% Y/Y to $463 million.

Margin: The adjusted operating margin remained flat at 17.3%.

TE Connectivity generated $945 million in free cash flow and held $1.66 billion in cash and equivalents.

"In Transportation, we continued to capitalize on our leading global position in electric vehicles to drive sales growth and, importantly, expand margins in the second half. Our Industrial segment demonstrated continued growth momentum in renewable energy applications and benefited from ongoing recovery in the commercial air and medical markets," said CEO Terrence Curtin.

"While our Communications segment declined in 2023 as expected, we are seeing positive momentum from artificial intelligence applications where our high-speed connectivity solutions and engineering expertise have resulted in key design wins with technology leaders," he added.

Outlook: TEL sees Q1 net sales of $3.85 billion, vs. the consensus of $3.94 billion, and adjusted EPS of $1.70, vs the consensus of $1.70 with strong margin expansion.

Price Action: TEL shares were up 1.9% at $120.18 at the time of publication Wednesday.

Now Read: Analysts Predict Investors Poised For 'Once-In-A-Generation' Stock Market Opportunity: 'We See Profits Taking Off'

Photo: Shutterstock

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsGuidanceBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!