TE Connectivity (NYSE:TEL) posted second-quarter results today that beat the consensus forecast on Wall Street.
The Schaffhausen, Switzerland–based company provides connectivity and sensor solutions for a broad range of industries, including medtech.
TE Connectivity reported profits of $560 million, or $1.71 per diluted share, on sales of $4.0 billion for the three months ended March 25, 2022, for a bottom-line gain of nearly 11% and sales growth of 7% compared with Q2 2021.
Adjusted to exclude one-time items, earnings per share were $1.81, $0.09 ahead of the Street, where analysts were looking for adjusted EPS of $1.72 on sales of $3.83 billion.
“I am very pleased with our strong second-quarter performance and our global team’s execution in delivering record sales and double-digit EPS growth that exceeded our expectations,” TE Connectivity CEO Terrence Curtin said in a news release. “All three of our business segments – transportation, industrial and communications – contributed and delivered sales growth year over year, demonstrating the strategic positioning of our portfolio, as we continue to benefit from our leadership position in long-term growth and sustainability trends.”
The industrial segment’s medical business reported $158 million in sales, down 2% from a year ago. Sales were flat on an organic level, the company said as it forecasted a recovery ahead in interventional procedures.
TE Connectivity said it expects to log adjusted EPS of $1.75 in the third quarter (up about 1% from Q3 2021) on $3.9 billion in sales. That outlook includes “an approximately 300 basis point year-over-year sales headwind from COVID-related shutdowns in China.”
Investors reacted by sending TEL shares up 5% to $126.83. The MassDevice and Medical Design & Outsourcing MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was up slightly.