TE Connectivity Ltd (TEL) Reports Q4 and Full Year Results for Fiscal Year 2023
TE Connectivity Ltd (NYSE:TEL) reported strong Q4 and full year results for fiscal year 2023 on November 1, 2023.
Q4 earnings per share exceeded guidance, with full year results reflecting strong margin and EPS expansion from first half to second half.
Record cash was generated for the quarter and the full year.
For the first quarter of fiscal 2024, the company expects net sales of approximately $3.85 billion, flat on both a reported and organic basis year over year.
TE Connectivity Ltd (NYSE:TEL) announced its fourth quarter and full year results for fiscal year 2023 on November 1, 2023. The company reported a strong finish to the fiscal year, delivering earnings above guidance for the quarter along with record cash flow that resulted in over 100% free cash flow conversion.
Financial Highlights
For the fourth quarter, TEL reported net sales of $4.035 billion, compared to $4.359 billion in the same period last year. The company's operating income for the quarter was $635 million, slightly lower than the $660 million reported in the same quarter last year. Net income for the quarter was $552 million, compared to $708 million in the same period last year.
For the full fiscal year 2023, TEL reported net sales of $16.034 billion, slightly lower than the $16.281 billion reported in the previous year. The company's operating income for the year was $2.304 billion, significantly lower than the $2.756 billion reported in the previous year. Net income for the year was $1.910 billion, compared to $2.428 billion in the previous year.
CEO Commentary
Im pleased with our strong finish to fiscal 2023, as we delivered earnings above guidance for the quarter along with record cash flow that resulted in over 100% free cash flow conversion, said TE Connectivity CEO Terrence Curtin. For the full year, our teams delivered year-over-year organic sales growth in our Transportation and Industrial segments, as the strength and diversity of our portfolio allowed us to overcome cyclicality in some of our end markets and headwinds from currency exchange."
Outlook for Q1 FY24
For the first quarter of fiscal 2024, TEL expects net sales of approximately $3.85 billion, flat on both a reported and organic basis year over year. GAAP EPS from continuing operations are expected to be approximately $1.59, up 27% year over year, with adjusted EPS of approximately $1.70, up more than 10% year over year, with strong margin expansion.
Financial Tables Summary
In the consolidated balance sheet, as of September 29, 2023, TEL reported total assets of $21.712 billion, compared to $20.782 billion as of September 30, 2022. The company's total liabilities were $10.057 billion, compared to $9.885 billion in the previous year. Shareholders' equity was $11.551 billion, compared to $10.802 billion in the previous year.
In the consolidated statements of cash flows, TEL reported net cash provided by operating activities of $1.138 billion for the quarter and $3.132 billion for the full year. The company's free cash flow was $945 million for the quarter and $2.404 billion for the full year.
Overall, TE Connectivity Ltd (NYSE:TEL) demonstrated a strong performance in the fourth quarter and full year of fiscal year 2023, with earnings exceeding guidance and record cash flow generation.
Explore the complete 8-K earnings release (here) from TE Connectivity Ltd for further details.
This article first appeared on GuruFocus.
