Stock Monitor: Digital Power Post Earnings Reporting

LONDON, UK / ACCESSWIRE / December 11, 2017 / Active-Investors free earnings report on TE Connectivity Ltd (NYSE: TEL) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=TEL. The Company posted its financial results on October 31, 2017, for the fourth quarter fiscal 2017. The Company's revenue and adjusted EPS surpassed analysts' expectations. Register today and get free access to our complimentary member's area where many more reports are available:

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Active-Investors.com is currently working on the research report for Digital Power Corporation (NYSE AMER: DPW), which also belongs to the Technology sector as the Company TE Connectivity. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, TE Connectivity most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:

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Earnings Highlights and Summary

For three months ended September 29, 2017, TE Connectivity's net revenues increased 3.7% to $3.46 billion from $3.33 billion in Q4 FY16. The Company's net revenue surpassed analysts' expectations of $3.26 billion.

During Q4 FY17, TE Connectivity's gross profit increased 3.2% to $1.14 billion from $1.10 billion in the same period last year. During Q4 FY17, the Company's gross margin decreased 10 basis points to 33% of revenue from 33.1% of revenue in the same period last year.

During Q4 FY17, TE Connectivity's operating income increased 0.4% to $552 million from $517 million in the same period last year. During Q4 FY17, the Company's operating margin increased 50 basis points to 16.0% of revenue from 15.5% of revenue in the same period last year. For the reported quarter, the Company's adjusted operating margin increased 20 basis points to 16.7% of revenue from 16.5% of revenue in the same period last year

During Q4 FY17, TE Connectivity's EBT increased 6.3% to $520 million from $489 million in the same period last year. During Q4 FY17, the Company's EBT margin increased 30 basis points to 15% of revenue from 14.7% of revenue in the same period last year.

For the reported quarter, TE Connectivity's net income decreased 1.8% to $429 million from $437 million in Q4 FY16. During Q4 FY17, the Company's diluted EPS decreased 0.8% to $1.21 from $1.22 in the same period last year. For the reported quarter, TE Connectivity's adjusted net income decreased 2.2% to $445 million from $455 million in Q4 FY16. During Q4 FY17, the Company's adjusted diluted EPS decreased 1.6% to $1.25 from $1.27 in the same period last year. Adjusted diluted EPS surpassed analysts' expectations of $1.16.

TE Connectivity's Segment Details

Transportation Solutions - During Q4 FY17, the Transportation Solutions segment's net revenue increased 6.2% or 4.7% on an organic basis to $1.84 billion from $1.74 billion in the same period last year. For the reported quarter, the segment's operating margin decreased 200 basis points to 17.8% of revenue from 19.8% of revenue in Q4 FY16. For the reported quarter, the segment's adjusted operating margin decreased 140 basis points to 18.2% of revenue from 19.6% of revenue in the fourth quarter of 2016.

Industrial Solutions - During Q4 FY17, the Industrial Solutions segment's net revenue increased 3.8%, or decreased 1.5% on an organic, to $954 million from $919 million in the same period last year. For the reported quarter, the segment's operating margin decreased 110 basis points to 11.8% of revenue from 12.9% of revenue in Q4 FY16. For the reported quarter, the segment's adjusted operating margin increased 40 basis points to 13.8% of revenue from 13.4% of revenue in the fourth quarter of 2016.

Communications Solutions - During Q4 FY17, the Communications Solutions segment's net revenue decreased 2.8%, or decreased 2.9% on an organic basis, to $658 million from $677 million in the same period last year. For the reported quarter, the segment's operating margin increased 890 basis points to 16.9% of revenue from 8.0% of revenue in Q4 FY16. For the reported quarter, the segment's adjusted operating margin increased 350 basis points to 16.4% of revenue from 12.9% of revenue in the fourth quarter of 2016.

Balance Sheet

As on September 29, 2017, TE Connectivity's cash and cash equivalents increased 88.3% to $1.22 billion from $647 million on September 30, 2016. For the reported quarter, the Company's long-term debt decreased 2.8% to $3.63 billion from $3.74 million in Q4 FY16.

For the reported quarter, the Company's net accounts receivable increased 11.9% to $2.29 billion from $2.05 billion in Q4 FY16. For the reported quarter, the Company's accounts payable increased 31.7% to $1.44 billion from $1.09 billion in the fourth quarter of 2016.

During Q4 FY17, the Company's cash provided by operating activities increased 11.6% to $873 million from $782 million in the same period last year. For the reported quarter, the Company's free cash flow increased 14.4% to $691 million from $604 million in Q4 FY16.

Outlook

For Q1 FY18, the Company expects net revenue growth to be in the range of 9% to 12% and adjusted diluted EPS to be in the range of $1.23 to $1.27.

For FY18, the Company expects net revenue growth to be in the range of 4% to 8% and adjusted diluted EPS to be in the range of $5.13 to $5.33.

Stock Performance Snapshot

December 08, 2017 - At Friday's closing bell, TE Connectivity's stock marginally advanced 0.99%, ending the trading session at $94.82.

Volume traded for the day: 2.09 million shares, which was above the 3-month average volume of 1.29 million shares.

Stock performance in the last month ? up 1.20%; previous three-month period ? up 17.11%; past twelve-month period ? up 34.31%; and year-to-date ? up 36.86%

After last Friday's close, TE Connectivity's market cap was at $33.66 billion.

Price to Earnings (P/E) ratio was at 20.27.

The stock has a dividend yield of 1.69%.

The stock is part of the Technology sector, categorized under the Diversified Electronics industry. This sector was up 0.4% at the end of the session.

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