TE Connectivity Ltd. (TEL) has announced its expectations for the third quarter, forecasting net sales to reach around $4.0 billion. It also expects Year on Year (YoY) GAAP EPS (Generally Accepted Accounting Principles Earnings Per Share) from continuing operations to increase by approximately 2%, to about $1.71. Adjusted EPS is anticipated are to rise by about 5% YoY, to approximately $1.85.
Looking at the previous quarter, the company's reported earnings were $541 million, or $1.75 per share. This is a significant increase compared to last year's second quarter, which came in at $433 million, or $1.36 per share. When we factor out items, TE Connectivity has reported adjusted earnings of $577 million or $1.86 per share. This exceeded the average expectation set out by analysts, who predicted the company to earn $1.83 per share. These predictions are often compiled by Thomson Reuters and typically exclude special items from their calculations.
However, the company's revenue for the quarter was not on par with the earnings, falling by 4.6% to $3.97 billion from $4.16 billion in the same time last year. Organic sales reduced by 3% too which signals that there is room for improvement in the company's performance.
