(Reuters) – TE Connectivity Ltd on Wednesday provided an upbeat forecast for second-quarter profit after reporting a better-than-expected quarterly profit, helped by component demand from electric vehicle makers.
Shares of the Switzerland-based company were trading up 6.19% before the bell in New York.
The company expects an adjusted profit of around $1.82 per share for the second quarter, while analysts estimate it at $1.78 per share, according to LSEG estimates.
For the first quarter ended Dec. 29, TE Connectivity reported an adjusted profit of $1.84 per share, beating Wall Street estimates of $1.71 per share.
Total net sales, however, stood at $3.83 billion, short of analysts’ estimates of $3.86 billion.
Operating profit in the Transportation Solutions unit, which competes with Aptiv as supplier to the auto industry, more than doubled to $478 million during the reported quarter.
The automotive industry uses TE Connectivity’s products in body and chassis systems, convenience features, driver information, infotainment solutions, and compact design solutions.
The company said it had deployed around $1 billion of capital during the quarter, of which $350 million was used for the Schaffner acquisition and about $600 million returned to shareholders.
(Reporting by Pratyush Thakur in Bengaluru; Editing by Shailesh Kuber)
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