TE Connectivity (NYSE:TEL) posted second-quarter results today that beat the consensus on Wall Street, despite a major medical sales drop.
The Schaffhausen, Switzerland-based company reported profits of $506 million, or $1.51 per share, on sales of $3.738 billion for the three months ended March 26, 2021, for a bottom-line gain of 211% on sales growth of 17% compared with Q2 2020.
Adjusted to exclude one-time items, earnings per share were $1.57, 9¢ ahead of The Street, where analysts were looking for sales of $3.52 billion.
Medical sales experienced a -13.4% decline for a loss of -$25 million, compared with Q2 2020 when the medical sector saw a 5.7% increase on $10 million in sales.
“I am very pleased with our performance as well as our team’s ability to deliver double-digit sales growth and record quarterly adjusted EPS that exceeded our expectations,” said TE Connectivity CEO Terrence Curtin in a news release. “We delivered strong earnings this quarter, and year-to-date generated free cash flow of $1 billion, also a record for the first half of a fiscal year. It is also encouraging that we are benefiting from both a recovering economic backdrop as well as our leadership positions in long-term technology trends that drive content growth. I am proud of our team’s perseverance to serve our customers through a global economic recovery and resulting challenges in the broader supply chain.”
For the third quarter of fiscal 2021, the company said it expects to log approximately $3.7 billion in sales, compared to $2.5 billion in the prior year. Adjusted earnings per share are expected to be approximately $1.57, compared to adjusted EPS of $0.59 year-over-year.
Shares in TEL were up 2.72% to $131.11 at mid-morning.
