NEW YORK (TheStreet) -- TE Connectivity (TEL) - Get TE Connectivity Ltd. Report shares are up 6.9% to $69.09 in trading on Wednesday after the electronic components manufacturer agreed to sell its broadband network business unit to CommScope (COMM) - Get CommScope Holding Co., Inc. Report for $3 billion.
The company's broadband business is made up of 65 facilities, has 10,000 employees and generated almost $2 billion in revenue in 2014. The company said that it would use the proceeds from the sale to help fund its stock buyback program as well as provide capital for other investments.
Exclusive Report:Jim Cramer's Best Stocks for 2015
Separately, the company also released its first quarter earnings results before the opening bell today.
The company earned $472 million in the first fiscal quarter, or 98 cents per diluted share on an adjusted basis, on revenue of $3.47 billion. Analysts on average were expecting the company to earn 90 cents per diluted share on revenue of $3.5 billion.
The company also issued current quarter earnings guidance between 98 cents and $1.02 per diluted share. For the full year the company expects to earn between $4.05 and $4.35 per diluted share.
TheStreet Ratings team rates TE CONNECTIVITY LTD as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate TE CONNECTIVITY LTD (TEL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, compelling growth in net income and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: TEL Ratings Report