TE Connectivity forecasts upbeat second-quarter profit on strong AI tools demand
Tweet
Share
E-mail
Employees hold a plate with components at TE Connectivity in Woerth, Germany, February 16, 2022. REUTERS/Lukas Barth
By Anshuman Tripathy
Jan 21 (Reuters) - TE Connectivity projected second-quarter profit above Wall Street estimates on Wednesday, as the electronic component maker banks on a surge in demand for its AI-related tools and products.
The company forecast second-quarter adjusted profit per share at about $2.65, compared with analysts' expectations of $2.63 per share, according to data compiled by LSEG.
The growing global demand for AI-related tools and products has boosted investments in data centers and network equipment, benefiting companies like TE.
First-quarter sales in the company's industrial solutions segment surged more than 38% year-over-year. The unit makes electrical connector systems and components for factory automation, and equipment used in data centers.
CEO Terrence Curtin told Reuters in an interview he expects the company's industrial segment to stay strong, citing the trends it sees in its order book.
The company recorded quarterly orders of more than $5 billion, Curtin said.
The Galway, Ireland-based firm posted a 10% year-over-year rise in first-quarter net sales at its transportation solutions segment, which makes terminals, connector systems, and sensors used in vehicles.
TE benefited from a strong automotive market in China, particularly electric vehicles where data connectivity is needed, Curtin said.
For the first quarter ended December 26, TE Connectivity reported an adjusted profit of $2.72 per share, beating analysts' estimates of $2.55 apiece.
Revenue for the quarter came in at $4.67 billion, compared with estimates of $4.53 billion.
(Reporting by Anshuman Tripathy in Bengaluru; Editing by Leroy Leo)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Serbians to keep up protest after President Vucic says he will step down
- Record heatwave disrupts Europe as France warns death toll to rise
- Earthquake of magnitude 4.1 strikes southern Portugal
Create E-mail Alert Related Categories
ReutersSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
