Wed, Jan. 20, 12:16 PM
- On an ugly day for equities, TE Connectivity (TEL +1%) remains higher after beating FQ1 estimates and issuing FY16 (ends Sep. '16) guidance slightly above consensus at the midpoints. TE forecasts FY16 revenue of $11.9B-$12.7B and EPS of $3.80-$4.20 vs. a consensus of $12.27B and $3.95.
- For FQ2, the connector/sensor maker expects revenue of $2.88B-$3.08B and EPS of $0.84-$0.92. Consensus is at $2.95B and $0.91.
- CEO Tom Lynch on FQ1: "Our businesses executed very well despite the uncertain macro-economic environment and continued softness in China and industrial markets. Last year's acquisitions in Sensors and Medical continued to gain momentum, and we advanced our strategy to focus on harsh environment applications with the announced sale of our Circuit Protection Devices business."
- Lynch on FY16: "For the year, we expect continued strength in our Transportation segment to offset weakness in industrial markets and softness in China. We anticipate industrial markets to pick up in the second half of fiscal year 2016 as inventory levels stabilize and orders continue to improve."
- Financials: Boosting FQ1 EPS: $1.25B was spent on common stock repurchases. Also helping: GAAP SG&A spend fell 12% Y/Y to $340M. R&D spend rose 1% to $162M. Gross margin fell 10 bps Y/Y to 33.4%. TE ended FQ1 with $2.22B in cash, and $3.37B in long-term debt.
- TE's FQ1 results, earnings release
Jan. 28, 2015, 8:08 AM
- CommScope (NASDAQ:COMM) agrees to acquire TE Connectivity's (NYSE:TEL) telecom, enterprise and wireless businesses for $3B, in an attempt to diversify its operations and broaden its geographic reach.
- COMM says it expects more than $150M in annual savings starting in the third year after the deal closes.
- TEL says the sale will allow it to focus on connectivity and sensor markets, particularly harsh environment applications; the deal does not include TEL's subsea communications or data communications businesses.
- TEL says it will use proceeds from the sale for stock buybacks, as well as acquisitions and other investments; its board authorizes a $3B expansion of its share buyback program.
- Earlier: TE Connectivity beats by $0.08, misses on revenue
- TEL +3.6%, COMM +2.1% premarket.
Jan. 28, 2015, 6:03 AM
- TE Connectivity (NYSE:TEL): FQ1 EPS of $0.98 beats by $0.08.
- Revenue of $3.47B (+4.2% Y/Y) misses by $40M.
- Shares +6.93% PM.
Jan. 26, 2015, 7:20 PM
- TE Connectivity (NYSE:TEL) is "nearing a deal" to sell its telecom/networking equipment unit to CommScope (NASDAQ:COMM) for about $3B, the WSJ reports. A deal could be announced as soon as this week.
- The business in question, known as TE's network solutions unit, had FY14 (ended Sep. '14) sales of $2.9B (21% of TE's total revenue). For reference, CommScope's 2014 revenue consensus is only at $3.84B, and the company had a market cap of $4.06B as of today's close.
- TEL +6.1% AH to $67.00. COMM +6.4% to $23.00.
Oct. 10, 2014, 5:36 PM
Jun. 18, 2014, 4:20 PM
- TE Connectivity (TEL) is buying industrial sensor maker Measurement Specialties (MEAS) for $86/share, or $1.7B after factoring net debt. The price represents a 10% premium to MEAS' Wednesday close.
- With MEAS expecting FY15 (ends March '15) revenue of $540M, TE is paying 3.1x forward sales.
- TE asserts the deal give it "a leadership position" in the sensor market, and allows it to offer "an unmatched range of connectivity and sensor solutions that are essential in a world where everything is increasingly connected."
- The deal is expected to close by year's end, to be financed with both cash and debt, and to yield mid-single digit EPS accretion in its first year. TE forecasts double-digit post-merger growth for its sensor ops.
- The purchase comes two months after a deal to buy underwater electrical connector firm Seacon for $490M.
Apr. 11, 2014, 9:48 AM
- Corning (GLW -1.4%) has been cut to Neutral by UBS.
- Symantec (SYMC -1.3%) has been cut to Equal Weight by Barclays.
- TE Connectivity (TEL +1.3%) has been upgraded to Buy by BofA/Merrill.
- Imperva (IMPV +1.6%) has received a contrarian upgrade to Buy from Sterne Agee a day after falling 44% due to its Q1 warning.
- Demandware (DWRE +0.9%) has been upgraded to Outperform by BMO.
- Ellie Mae (ELLI -5%) has been cut to Market Perform by FBR.
Apr. 2, 2014, 10:46 AM
- TE Connectivity (TEL +2.7%) is acquiring the Seacon Group, a maker of underwater electrical connectors, for $490M in cash. The deal is expected to close in TE's FY14 (ends Sep. '14).
- Seacon's connectors are used in underwater/remotely-operated vehicles, as well as in oil/gas, environmental, and oceanographic applications.
- TE says the deal strengthens its position in oil/gas (a growing market), and that the combination of Seacon's fiber optic offerings with TE's cable and power connector products will "create a leading product offering for undersea applications."
Jan. 23, 2014, 9:41 AM
- Fusion-io (FIO +11.7%) has been started at Buy by Craig-Hallum after beating FQ2 estimates and issuing light FQ3 guidance.
- Rambus (RMBS +5.3%) has been upgraded to Buy by Citi ahead of Monday's Q4 report.
- TE Connectivity (TEL -0.2%) has been upgraded to Buy by Cross Research after delivering an FQ1 beat yesterday.
- CalAmp (CAMP -7.7%) has been cut to Neutral by B. Riley.
Sep. 9, 2013, 9:30 AM| Sep. 9, 2013, 9:30 AM
Jul. 24, 2013, 1:45 PM
Mar. 30, 2012, 9:34 AM
Oct. 12, 2011, 9:05 AM
Premarket gainers: LIZ +42%. AONE +15%. FRO +10%. ONXX +8%. TEL +7%. ALU +7%. BCS +6%. ING +5%. ASML +5%. DB +5%. MT +5%. RBS +5%. MPEL +5%. GNW +5%. CS +4%. DRYS +4%. YRCW +3%. SIRI +3%. S +3%. BHP +3%. NOK +3%. FCX +3%. UBS +3%. QGEN +3%. AU +3%. MCP +3%. RIO +3%.| Oct. 12, 2011, 9:05 AM
Losers: CHKM -5%. PCX -5%. PWER -4%. AT -4%. AA -4%. HST -3%. FSLR -3%.
Oct. 11, 2011, 6:21 PM
TE Connectivity (TEL) will replace Cephalon (CEPH) in the S&P 500 index after the close of trading on Friday, October 14. Cephalon is being acquired by Teva Pharmaceutical Industries (TEVA) in a deal expected to be completed on or about that date pending final approvals. TEL +6.9% AH.| Oct. 11, 2011, 6:21 PM
Jul. 20, 2011, 12:33 PM