Schaffhausen, Switzerland-based TE Connectivity reported overall sales of $2.55 billion for the quarter ended June 26, 2020, down -24% from the same quarter one year ago. Earnings per share of $0.59 exceeded Wall Street analysts’ consensus of $0.40 per share on sales of $2.55 billion.
The decline in medical sales was driven by the delay in elective procedures caused by COVID-19, the company reported.
“I’m pleased we delivered sales and adjusted earnings per share above our expectations, despite the ongoing COVID-related impacts this quarter,” TE Connectivity CEO Terrence Curtin said in a news release. “We believe the quarter we just ended is the low point for our business, and we have seen improvements in orders and we expect sequential revenue and margin improvement into our fourth fiscal quarter. We are taking advantage of the current market environment and leveraging the diversity of our portfolio and the key technology trends to drive future content growth, while executing on our global manufacturing strategy and accelerating cost reduction. These actions position us well for the gradual recovery we expect to see in market demand.”
For the fourth quarter of 2020, the company expects net sales to be up approximately 10% over Q3, driven primarily by an increase in its transportation segment. The company is not providing full year guidance due to uncertainty of future demand due to COVID-19.