TE Connectivity Q3 Earnings Beat Expectations and Announces $1.4B Acquisition

Market Focus07-22

On July 22, TE Connectivity reported fiscal Q3 net sales of $5.16 billion, surpassing the FactSet consensus estimate of $5.01 billion, representing a 14% year-over-year increase. Adjusted EPS came in at $2.94, beating the $2.84 estimate by 3.52%, marking a roughly 22% increase over the prior-year period. Simultaneously, TE Connectivity announced it will acquire Astrodyne TDI for approximately $1.4 billion, with the transaction expected to close before year-end.

Additionally, the company issued Q4 guidance above Wall Street expectations, projecting adjusted EPS of approximately $3.05 versus the FactSet estimate of $2.97. Management attributed the strong outlook to surging demand for AI-related products and data center connectivity solutions, reinforcing growth momentum first signaled in last quarter's above-consensus guidance.

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