TE Connectivity (NYSE: TEL) reported Q3 EPS of $1.43, $0.06 better than the analyst estimate of $1.37. Revenue for the quarter came in at $3.8 billion versus the consensus estimate of $3.69 billion.

Third Quarter Highlights

• Net sales were $3.8 billion, up 12 percent as reported and 6 percent organically over the third quarter of 2017
• Diluted earnings per share (EPS) from continuing operations were $1.29, up 7 percent from the third quarter of 2017, and adjusted EPS were $1.43, 15 percent growth over the same period in 2017
• Cash flow from continuing operating activities was $800 million and free cash flow was $504 million, with $382 million returned to shareholders
• Orders, excluding the company\'s SubCom business, were $3.7 billion in the quarter, up 9 percent organically from the third quarter of 2017

Third Quarter Results

For the third quarter, the company reported net sales of $3.8 billion, with diluted EPS from continuing operations of $1.29, and adjusted EPS of $1.43. Cash flow from continuing operating activities was $800 million and free cash flow was $504 million. Excluding SubCom, total orders were $3.7 billion, up 15 percent as reported and 9 percent organically over the third quarter of 2017. The book-to-bill ratio for the quarter, excluding SubCom, was 1.05.

"We exceeded our guidance for the quarter, delivering strong double-digit growth in both sales and adjusted earnings per share through our positive alignment with long-term global growth trends in our markets, the customer focus of our global teams and our industrial technology leadership position," said TE Connectivity Chief Executive Officer Terrence Curtin. "Our performance reflects the benefits of our strong business model, effective execution of our strategy and our focus on co-creating a safer, sustainable, productive and connected future with our customers."

2018 Outlook For the fiscal fourth quarter of 2018, the company expects net sales of $3.59 billion to $3.69 billion, reflecting an increase of 5 percent on both an actual and organic basis year-over-year, at the mid-point. Diluted EPS from continuing operations are expected to be $1.23 to $1.25, including net restructuring and acquisition-related charges of $0.08. The company expects adjusted EPS of $1.31 to $1.33 which represents a 6 percent improvement at the mid-point versus the fourth quarter of 2017.

For the full year, the company expects net sales of $14.58 to $14.68 billion, reflecting 12 percent actual and 6 percent organic growth at the mid-point versus the prior year. Diluted EPS from continuing operations are expected to be $3.79 to $3.81, including net restructuring, acquisition-related, tax and other charges of $1.77. The company expects adjusted EPS of $5.56 to $5.58, reflecting 15 percent growth at the mid-point compared to fiscal year 2017.

GUIDANCE:

TE Connectivity sees FY2018 EPS of $5.56-$5.58, versus the consensus of $5.57. TE Connectivity sees FY2018 revenue of $14.58-14.68 billion, versus the consensus of $14.61 billion.

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