TE Connectivity Ltd TEL reported a first-quarter FY24 net sales of $3.83 billion, beating the consensus of $3.86 billion, essentially flat year-on-year.
The net sales declined by 1% organically. The adjusted EPS of $1.84 beat the consensus of $1.71.
Orders were $3.8 billion, up 4% year-over-year, with growth in all segments.
Revenue from Transportation Solutions rose by 5% Y/Y to $2.37 billion, Industrial Solutions decreased by 3.3% Y/Y to $1.03 billion, and Communications Solutions declined by 17% Y/Y to $433 million.
Margin: The adjusted operating margin improved by 290 bps to 19.1%.
TE Connectivity generated $570 million in free cash flow and held $1.17 billion in cash and equivalents.
TE Connectivity CEO Terrence Curtin acknowledged the company’s innovations and global position in automotive connectivity, including a strong presence in Asia, enabling it to deliver year-over-year growth in its Transportation segment.
The industrial segment continued to benefit from growth in renewable energy, commercial air, and medical applications. The Communications segment delivered margins in the high teens, and the company expects revenue growth in artificial intelligence applications.
Curtin expects strong margin performance at the company level throughout fiscal year 2024.
Outlook: TEL sees second-quarter net sales of $3.95 billion, vs. the consensus of $3.995 billion, and adjusted EPS of $1.82, vs the consensus of $1.78.
Price Action: TEL shares are trading higher by 7.40% at $144.62 on the last check Wednesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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