TE Connectivity climbs after raising outlook

TE Connectivity climbs after 3rd-quarter net income grows and company bolsters outlook

Associated Press

NEW YORK (AP) -- Shares of Swiss electronics maker TE Connectivity Ltd. rose Wednesday after the company said its third-quarter net income jumped 68 percent and raised the lower end of its profit guidance for its fiscal year.

TE Connectivity said it was more productive in the third quarter and its sales costs decreased. A year ago the company's net income was weighed down by a $61 million loss from two businesses it sold. The company said it now expects to report an adjusted profit of $3.18 to $3.22 per share for the fiscal year, up from its prior estimate of $3.10 to $3.22 per share.

Analysts were expecting $3.15 per share on average, according to FactSet.

Shares of TE Connectivity rose $2.75, or 5.7 percent, to $50.70 in late trading. The stock has risen more than 60 percent in the last year and it reached an all-time high of $50.85 Wednesday.

The company said it earned $335 million, or 80 cents per share, over the three months ended June 28. That's up from $199 million, or 46 cents per share, one year ago. Excluding one-time items TE Connectivity said it earned 88 cents per share in the latest quarter and 79 cents per share a year earlier. Its revenue slipped 1 percent, to $3.45 billion from $3.50 billion.

Analysts had forecast adjusted net income of 83 cents per share and $3.39 billion in revenue, according to FactSet.

The company sold its touch solutions and professional services businesses in 2012.

TE Connectivity said revenue from its transportation business grew 7 percent to $1.44 billion. Revenue from its other businesses fell, as its network revenue slid 6 percent to $803 million, industrial revenue fell 4 percent to $779 million, and consumer revenue declined 12 percent to $429 million.

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