TE Connectivity Beats Out Analyst Expectations as Company Continues to Grow in Q2

By Thomas Price Wednesday, April 21, 2021

With electronic-based technology continuing to become an even more integrated part of life than ever before, the many business types that help fuel that industry have continued to benefit from the growth. This is certainly true for tech company TE Connectivity who recently released its Q2 earnings report. The company blew by analyst expectations as its business saw total revenue and earnings per share increase significantly. This new bump in total sales and earnings should help the company boost stock prices as TE Connectivity looks to break all-time high prices per share.

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TE Connectivity Earnings vs. Expectations

In the Q2 earnings report for the connectivity parts and sensor company, the business generated $3.738 billion in total sales. The figure represents an increase of over $500 million compared to the same quarter in the previous fiscal year. The increase translates to a growth of 17% on a reported basis and 11% on an organic basis. The company also beat out analyst expectations, with the overall consensus indicating that the business would only generate around $3.51 billion in net sales.

The strength of the quarter only continued when moving on to earnings for TE Connectivity as well. In fact, the business reported diluted earnings of $1.51 per share alongside slightly higher adjusted earnings of $1.57 per share. TE Connectivity saw major growth in earnings compared to the same quarter last year, where the company actually reported a loss of $1.35 per share. This figure also outperformed market expectations which had only projected the business to report $1.48 per share.

The majority of the success in Q2 for TE Connectivity comes from the overall expansion of the business. Orders for connectors and sensors in devices as varied as 5G towers and EV hardware increased by 36% compared to last year, totaling $4.6 billion.

Future Outlooks and Stock Market Reaction

Alongside the Q2 earnings report, TE Connectivity released updated guidance for Q3 of the 2021 fiscal year. The company expects a net sales of approximately $3.7 billion, which would be an over $1 billion increase from the same quarter the year before. TE Connectivity also projects another quarter of earnings at $1.51 per share.

The company has also seen early enthusiasm from the stock market, with pre-market trading showing share prices up over 2% from close the evening before. Stock prices now sit comfortably over $131 per share — incredibly close to the company’s all-time high.

In a statement released with the Q2 earnings report, CEO of TE Connectivity Terrence Curtin said, “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. 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.”

About the Author

Headshot for author Thomas Price

Tom Price is a writer focusing on Entertainment and Sports Features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.

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