TE Connectivity had a better than expected quarter, reporting net sales of $3.45 billion that exceeded the high end of its guidance but were down slightly from the same period last year.
The company provides connectivity solutions in multiple verticals including healthcare, aerospace, and automotive, as well as Distributed Antenna Systems.
Sales were up 6% sequentially, which Chairman and CEO Tom Lynch attributed to the company’s strong transportation segment and improving demand in its industrial and network segments.
The company expects net sales for its fourth quarter of $3.35-$3.45 billion, and raised its earnings per share outlook for the full year to $3.18-$3.22 on annual sales of $13.2-$13.3 billion.
Meanwhile, wireless broadband provider Tessco Technologies earned revenues of $144.1 million, down from $192.4 million in the same period last year, as it transitions out of a relationship with third-party logistics company 3PL. Tessco said the public carrier market segment had 87% revenue growth, with the commercial dealer and reseller market up 14% and retailer/independent dealer agent/carrier market up 4%. Revenues from private and government system operators were down 6%.
Sales of the company’s Ventev design and manufacturing division — which supplies its products — were up 37%, and CEO and Chairman Robert Barnhill Jr. said that the line is expected to be a major contributor to revenue as the company moves forward.
However, Tessco’s net income was up only sightly year-over-year, at $4.3 million compared to $4.2 million during the prior year period.
“We started our new fiscal year with strong core revenue growth,” said Chairman and CEO Robert B. Barnhill, Jr.”Earnings matched last year’s first quarter without the benefit of the former third-party logistics (3PL) relationship that contributed $70.0 million in revenue and $5.4 million in gross profit to our results a year ago. We have fully transitioned out of that low-margin 3PL relationship, allowing us to focus exclusively on being the Total Source of the product-solutions to build, use and maintain wireless systems.”
