Summary
TE Connectivity Ltd. (TEL) reported strong financial results for the third quarter and first nine months of fiscal year 2021, reflecting a significant recovery and growth compared to the prior year period impacted by COVID-19. Net sales surged by 50.9% in the third quarter and 24.6% for the nine-month period, driven by robust performance across all segments, particularly Transportation Solutions. The company demonstrated improved profitability, with gross margin expanding to 33.0% in the quarter and operating income significantly increasing. This performance was supported by higher volumes, improved manufacturing productivity, and favorable foreign currency translation. TE Connectivity also maintained a strong liquidity position and provided an optimistic outlook for the fourth quarter and full fiscal year 2021, expecting further sales growth and solid earnings per share.
Financial Highlights
52 data points| Revenue | $3.85B |
| Cost of Revenue | $2.58B |
| Gross Profit | $1.27B |
| SG&A Expenses | $366.00M |
| Operating Income | $714.00M |
| Interest Expense | $14.00M |
| Net Income | $580.00M |
| EPS (Basic) | $1.76 |
| EPS (Diluted) | $1.74 |
| Shares Outstanding (Basic) | 330.00M |
| Shares Outstanding (Diluted) | 333.00M |
Key Highlights
- 1Net sales increased significantly by 50.9% year-over-year to $3.85 billion for the third quarter and by 24.6% to $11.11 billion for the first nine months of fiscal 2021.
- 2All three segments (Transportation Solutions, Industrial Solutions, and Communications Solutions) experienced sales growth, with Transportation Solutions showing exceptional 80.5% growth in the quarter.
- 3Gross margin improved to 33.0% in the third quarter from 27.7% in the prior year period, indicating improved operational efficiency and pricing power.
- 4Operating income saw a substantial increase of $580 million in the third quarter and $1.58 billion for the nine-month period, reflecting the strong revenue growth and cost management.
- 5The company repurchased $591 million of common shares in the first nine months of fiscal 2021 and had $1.9 billion remaining under its share repurchase authorization.
- 6TE Connectivity raised its full-year 2021 outlook, expecting net sales of approximately $14.9 billion and diluted earnings per share from continuing operations of approximately $5.94.