- TE Connectivity Ltd TEL reported second-quarter FY23 net sales growth of 4% year-on-year to $4.16 billion, beating the consensus of $3.92 billion. Orders grew to $4.0 billion Q/Q.
- Revenue from Transportation Solutions rose 7.3% Y/Y to $2.48 billion, Industrial Solutions increased 11.5% Y/Y to $1.19 billion, and Communications Solutions declined by 22.2% Y/Y to $486 million.
- Margin: The non-GAAP operating margin contracted 240 basis points to 16.0%.
- The non-GAAP EPS of $1.65 beat the consensus of $1.58.
- TE Connectivity generated $635 million in operating cash flow and held $905 million in cash and equivalents.
- CEO Terrence Curtin said, "In particular, our Automotive business continues to outperform a flat auto market due to our leading global position in electric vehicles as our customers seek out our technology to enable an increasingly electrified world. In our Industrial segment, our Medical business delivered record quarterly sales and we are continuing to capitalize on growth momentum in renewable energy applications. While our Communications segment was impacted by weaker end markets and supply chain corrections as expected."
- "We continue to expect margin expansion at the company level in the second half of the year, driven by further margin improvement in our Transportation segment, as we continue to take actions to navigate market dynamics."
- Outlook: TEL sees Q3 net sales of $4.0 billion, below the consensus of $4.06 billion, and non-GAAP EPS of $1.65, below the consensus of $1.72.
- Price Action: TEL shares closed lower by 3.18% at $124.18 on Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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