Medtech supplier TE Connectivity (NYSE: TEL) today released financial results for its fiscal Q3, falling short of analysts’ sales expectations but exceeding expected earnings.
Schaffhausen, Switzerland-based TE Connectivity said medical market performance in its industrial segment continues to improve. The company provides connectivity and sensor solutions for medical applications and a broad range of other industries.
“We delivered earnings above guidance, along with year-over-year sales growth in our Transportation and Industrial segments, as we continue to benefit from the strategic positioning of our portfolio around key growth and sustainability trends,” TE Connectivity CEO Terrence Curtin said in a news release. “Our leading global position in electric vehicles once again allowed us to deliver a strong performance in Transportation, and we continued to capitalize on growth momentum in renewable energy applications as well as ongoing market recovery in commercial air and medical in our Industrial segment. While our Communications segment declined as expected, we are excited about our increased design win momentum in AI applications, where our high-speed connectivity solutions will drive future growth.”
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TE Connectivity reported profits of $528 million, or $1.68 per share, on sales of $4 billion for the three months ended June 30. That was a bottom-line decrease of 11% and a sales decline of 2% compared with Q3 2022.
Adjusted to exclude one-time items, earnings per share were $1.77, 11 cents ahead of the Street, where analysts were looking for EPS of $1.66 on sales of $4.05 billion.
TE Connectivity said it expects to log adjusted EPS of $1.75 in Q4 on sales of around $4 billion.
“Our year-to-date free cash flow is up over 40 percent year over year, demonstrating our strong business model,” Curtin said. “We are delivering on our commitment to expand margins in the second half, reinforced by our third quarter performance and fourth quarter guidance. We remain confident that we are well positioned for long-term profitable growth, as our customers depend on our technology to advance important trends including e-mobility, renewable energy, factory automation and artificial intelligence.”
Shares of TEL increased 2% to $144.15 in morning trading. The Medtech100, a financial index of the largest publicly traded medical device companies, was relatively unchanged.
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