TE Connectivity's Fourth Quarter Earnings Report

TE Connectivity (NYSE:TEL) announced its results for the most recent quarter on November 5, 2012. TE Connectivity is a provider of engineered electronic components, network solutions, specialty products and communication systems.

Earnings season is important to investors because it shows how much profit is left in the company's hand after deducting costs from revenue. SEE: Earnings: Quality Means Everything

The Numbers: TE Connectivity managed to beat EPS estimates, though the company's revenues failed to top expectations. The company reported adjusted net income of 76 cents per share versus the 74 cents per share estimate and revenues of $3.36 billion versus the $3.56 billion estimate. Revenue fell 10.4% from the same period last year. Net income for the fourth quarter was up 21.5% to $396 million. Last quarter's profit increase comes after three consecutive quarters of year-over-year profit decreases. Profits declined 43.9% in the third quarter,14% three quarters ago, and 1.9% four quarters ago.



Management Quote: "We had a solid fourth quarter with sales and EPS in line with our guidance despite an increasingly uncertain economic environment," said TE Connectivity Chief Executive Officer Tom Lynch. "We delivered another strong year of free cash flow and resumed our share repurchase program in the fourth quarter. During the year, we continued to strengthen and focus the Company with the acquisition of Deutsch and the divestitures of Touch and Professional Services."



Looking Ahead: Over the last 30 days, analysts have not been optimistic about the company's next-quarter performance. The average estimate for the first quarter of the next fiscal year is now 75 cents per share, down from 77 cents. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. The average estimate hasn't changed from $2.84 per share for the fiscal year.