TE Connectivity saw a surge in its stock price during morning trading following the release of its first-quarter results. The sensor maker expressed optimism about the future of auto production, a crucial market for the company.
The stock experienced a more than 8% increase, reaching $145.55 in recent trading. This growth adds to an overall 17% increase in shares over the past 12 months.
TE Connectivity reported adjusted earnings of $1.84 per share for its fiscal first quarter, which ended on Dec. 29. This exceeded the $1.71 per share expectation set by analysts surveyed by FactSet. Looking ahead to the current quarter, the company aims to achieve $1.82 per share in adjusted earnings, surpassing the anticipated $1.78 per share.
Although the company’s first-quarter sales experienced a slight decrease to $3.83 billion, it fell short of the projected $3.87 billion mark.
While industrial-solutions sales dipped over 3%, automotive sales grew by 5%. In the Industrial-solutions segment, a decline in industrial equipment sales offset positive performance in aerospace, defense, marine, energy, and medical divisions. Sales in the communications business also plummeted 17%.
During a conference call with analysts, TE Connectivity executives expressed their confidence in auto production, particularly in the realm of electric vehicle manufacturing in Asia.