TE Connectivity (NYSE: TEL) reported Q2 EPS of $1.29, $0.29 better than the analyst estimate of $1.00. Revenue for the quarter came in at $3.2 billion versus the consensus estimate of $2.94 billion.

Second Quarter Highlights

• Net sales were $3.2 billion, in line with the company's guidance, down 6% on a reported and down 5% on an organic basis over the second quarter of 2019.
• Diluted earnings per share (EPS) from continuing operations were a loss of $1.35. Adjusting for one-time impairment charge, adjusted EPS were $1.29, exceeding the high end of the company's guidance.
• Cash flow from continuing operating activities was $481 million and free cash flow was $311 million. Year to date free cash flow up 34% versus prior year. During the quarter the company returned $433 million returned to shareholders.
• Strong liquidity position with more than $2 billion available liquidity.

"The market environment we guided to last quarter changed dramatically, and I'm pleased that we still delivered sales in line with our guidance and adjusted earnings per share above our expectations," said TE Connectivity Chief Executive Officer Terrence Curtin. "Despite the impact of COVID-19, we were able to maintain adjusted operating margins above 16% due to the diversity of our portfolio, our global manufacturing strategy and our early execution of cost reduction actions. We continue to successfully prioritize the safety of our employees while keeping our commitments to our customers, and I want to thank our employees for their strong execution in what has been an unprecedented time for our global community. We expect to see COVID-related demand impacts in the second half of the year particularly in the transportation and commercial aerospace markets, but our strong free cash flow and liquidity allows us to continue to invest in long-term global growth trends and position us for further content growth when demand returns."

2020 Outlook

For the fiscal third quarter of 2020, the company expects net sales to be down approximately 25% sequentially, reflecting the impact of COVID-19 on the end demand environment, especially in the transportation and commercial aerospace markets. The company is withdrawing its full year guidance due to limited visibility of COVID-19 impact on future demand.

For earnings history and earnings-related data on TE Connectivity (TEL) click here.