Which way TE Connectivity Ltd. (NYSE:TEL) earnings moved?

TE Connectivity Ltd. (NYSE:TEL) reported earnings for the three months ended Mar2016 on April 20, 2016. The company earned $0.9 per share on revenue of $2.6B. Analysts had been modeling earning per share of $0.89 with $2.71B in revenue.

TE Connectivity Ltd. (NYSE:TEL) reported results for the fiscal second quarter ended March 25, 2016.

Second Quarter Highlights

• Net sales of $2.95 billion


• Adjusted Earnings Per Share (EPS) were $0.90, above the mid-point of guidance


• Diluted Earnings Per Share from Continuing Operations (GAAP EPS) were $1.06


• Free cash flow was $165 million


• Returned $1.2 billion to shareholders through share buybacks and dividends


• Completed the acquisition of Creganna Medical Group (closed April 4, 2016), and the sale of the Circuit Protection business


• Named a 2016 World’s Most Ethical Company by Ethisphere Institute

“I am pleased we exceeded the midpoint of our adjusted EPS guidance range. The company continues to execute well in a sluggish global economic environment,” said TE Connectivity Chairman and CEO Tom Lynch. “Organic growth in our Transportation Solutions segment and SubCom business was offset by continued weakness in industrial-related markets.

FISCAL SECOND QUARTER RESULTS

The company reported net sales of $2.95 billion, compared to prior year sales of $3.08 billion. Adjusted EPS were $0.90, compared to $0.91 in the prior year. GAAP EPS were $1.06, compared to $0.77 in the prior year. Free cash flow was $165 million for the quarter.

GAAP EPS included $64 million of income from net restructuring and other charges (credits) partially offset by $6 million of expense from acquisition related charges and tax items.

Total company orders were $2.7 billion, up 1 percent sequentially, excluding SubCom. The book-to-bill ratio was 1.00, excluding SubCom.

OUTLOOK

For the fiscal third quarter 2016, the company expects net sales of $3.0 billion to $3.2 billion and adjusted EPS of $1.00 to $1.06. GAAP EPS are expected to be $0.90 to $0.96, including acquisition related charges of $0.03, and restructuring and other charges of $0.07.

For the full year, the company expects net sales of $12.1 billion to $12.5 billion and adjusted EPS of $3.90 to $4.10. GAAP EPS are expected to be $3.92 to $4.12, including acquisition related charges of $0.06, net restructuring and other credits of $0.01, and tax-related income of $0.07. The outlook includes the Creganna acquisition, reduced impact from foreign exchange headwinds and the impact of a 53rd week.

TE Connectivity Ltd. earnings per share showed a decreasing trend of -22.2% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 441%.Analysts project EPS growth over the next 5 years at 15%. It has EPS annual growth over the past 5 fiscal years of 20.2% when sales grew 0.9. It reported -4.2% sales drop, and 38.2% EPS growth in the last quarter.

The stock is trading at $60, up 16.05% from 52-week low of $51.7. The stock trades down -14.21% from its peak of $69.88 and 15% above the consensus price target of $69. Its volume clocked up at 2.3 million shares which is higher than the average volume of 1.74 million shares. Its market capitalization currently stands at $21.33B.