Electronic equipment manufacturer TE Connectivity released guidance indicating stronger-than-expected financial performance for the upcoming quarter, driven primarily by elevated demand for artificial intelligence-related tools and infrastructure. The company attributed the positive outlook to increased global investments in data centers and network equipment, which have benefited producers of electrical connector systems like TE.
Chief Executive Officer Terrence Curtin outlined the company’s approach to managing input costs, indicating that TE would continue passing elevated raw material expenses to customers through pricing adjustments rather than absorbing the increases internally. He noted that costs for petroleum-based products including resins remained high amid geopolitical tensions. Regarding potential tariff relief from the Trump administration, Curtin stated that the company had submitted applications for refunds but had not received substantial amounts, and indicated any funds obtained would be returned to customers rather than used for broad price reductions.
TE also announced plans to acquire Astrodyne TDI, a power management and filtering solutions provider, for $1.4 billion, with completion expected by year-end. The company guided for adjusted earnings of $3.05 per share and revenue of approximately $5.25 billion in the fourth quarter, exceeding analyst expectations of $2.96 per share and $5.16 billion respectively.
In its most recent quarterly results, TE reported adjusted earnings of $2.94 per share on revenue of $5.16 billion, representing 14% growth from the prior-year period. Both figures surpassed consensus estimates. Management noted that order volumes had increased 70% during the year, building a substantial backlog heading into the next period.
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