NEW YORK (TheStreet) -- TE Connectivity (TEL) is trading higher after beating expectations on first-quarter earnings released before market open Wednesday. By late morning, shares had climbed 6.8% to $60.12, and nearly 2.2 million shares had changed hands compared to its three-month daily average trading volume of 1.57 million.
The electrical component maker reported net earnings for the period ended Dec. 27 of 82 cents a share, beating estimates by a nickel according to analysts surveyed by Yahoo! Finance. Revenue of $3.33 billion came in 6.4% higher than the year-ago period and exceeded consensus by $50 million.
"We are encouraged by the continued strength in the global automotive market, improvements in our industrial end markets and increased demand in the fiber portion of the broadband network, all markets in which we have a leadership position," said CEO Tom Lynch in a statement.
For the second quarter, management anticipates net income of between 88 cents and 92 cents a share on sales of $3.4 billion to $3.5 billion. Over fiscal 2014, the company gave net income guidance in the range of $3.65 to $3.85 a share and sales between $13.8 billion and $14.2 billion.
The Board of Directors also announced it had recommended a 16% increase to the quarterly dividend subject to shareholder approval in March.
TheStreet Ratings team rates TE CONNECTIVITY LTD as a Buy with a ratings score of A+. The 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, solid stock price performance, notable return on equity, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow."