Benzinga | Jan 26, 2022 06:57AM EST

TE Connectivity Tops Q1 Consensus; Issues Mixed Q2 Outlook

* TE Connectivity Ltd (NYSE:TEL) reported first-quarter FY22 net sales growth of 8% year-on-year to $3.8 billion, beating the consensus of $3.73 billion. Orders were up 7% Y/Y at $4.3 billion.

* Revenue from Transportation Solutions declined 3% Y/Y to $2.16 billion, Industrial Solutions increased 21.3% Y/Y to $1.06 billion, and Communications Solutions grew 41.4% Y/Y to $601 million.

* Margin: The non-GAAP operating margin expanded 90 basis points to 18.6%.

* The non-GAAP EPS of $1.76 beat the consensus of $1.60.

* TE Connectivity generated $532 million in operating cash flow and held $982 million in cash and equivalents.

* Outlook: TEL sees Q2 FY22 net sales of $3.8 billion, below consensus of $3.86 billion, and non-GAAP EPS of $1.70, above consensus of $1.69.

* Price Action: TEL shares closed lower by 2.17% at $149.20 on Tuesday.