TEL: Performing Very Well Under the Currency Covers

We reiterate our Outperform on the shares of TE Connectivity (TEL; $155.09; O/P) after the company produced FQ1 (Dec) results and guidance that ranged from in line to better than we expected if we exclude…

PLXS: First Look at FQ1 (Dec) Results and Outlook

Plexus (PLXS; $170.49; E/W) reported FQ1 (Dec) non-GAAP EPS of $1.73, which beat our $1.60 and the Street’s $1.59 despite somewhat lower-than-expected sales ($976mm vs. our $988mm and the Street’s $982mm) that resulted in as…

APTV: Making a Big Portfolio Move

This morning, Aptiv (APTV; $62.72; E/W) announced plans to separate its Electrical Distribution Systems (EDS) business from the rest of the company (RemainCo) and create two independent, publicly traded companies in a tax-free transaction. This…

APH: First Look at Q4 Results and Outlook

Amphenol (APH; $74.98; E/W) reported Q4 non-GAAP EPS of $0.55, which beat our consensus matching $0.50 led by better than expected sales ($4,318mm vs. our $4,020mm and the Street’s $4,061mm). As per the table below,…

STX: Gross Margin Opportunity Continues to Shine Through

We reiterate our Outperform and $130 target on the shares of Seagate (STX; $101.25) after it reported a better-than-expected FQ2 (Dec) EPS, which importantly was driven by much better-than-expected gross margins. STX also provided FQ3E…

SANM: Favorable Risk/Reward Into FQ1 (Dec) Print

The risk/reward looks favorable to us around the shares of Sanmina (SANM; $84.18; O/P) into its FQ1 (Dec) results and guidance, scheduled for Monday (1/27 after market). Specifically, we look for no worse than as…

CLS: Let Your Winners Run

We are raising our target on the shares of Celestica (CLS; $118.10; O/P) from $100 to $135 ahead of its Q4 results and guidance, which are scheduled for Thursday, January 30th (before market). The stock…

TEL: First Look at FQ1 (Dec) Results and Outlook

TE Connectivity (TEL; $148.30; O/P) reported FQ1 (Dec) non-GAAP EPS of $1.95, which was ahead of our $1.88 and the Street’s $1.89 despite somewhat lower-than-expected sales ($3,836mm vs. our $3,900mm and consensus of $3,905mm). By…

STX: First Look at FQ2 (Dec) Results and Outlook

Seagate (STX; $101.25; O/P) reported FQ2 (Dec) non-GAAP EPS of $2.03, which beat our $1.87 and the Street’s $1.88 on the back of much better-than-expected gross margins as sales of $2,325mm compared to our $2,313mm…

Some Solid Year-End European Auto Data

This morning, the European Automobile Manufacturers Association released car registration data from the region for the month of December, which exceeded typical seasonal trends, including ongoing healthy trends of hybrid electric vehicle registrations. Specifically, European…

FLEX: Cloud Mix Should Drive Some FQ3 (Dec) Upside

We reiterate our Outperform on the shares of Flex (FLEX; $42.72) ahead of its FQ3 (Dec) print and guidance, scheduled for Wednesday, January 29th (before market), which we think can come with some operating margin…

APH: Not Expecting Any Major Surprises with Q4 Print

We assume the shares of Amphenol (APH; $69.86; E/W) continue to trade within the range we have seen from the stock for the past 10 months or so after the company offers up its Q4…

WDC: Pre-Announces FQ2 (Dec) as CFO Departs

Last night, Western Digital (WDC; $64.25; O/P) filed an 8-K in which it disclosed that it expected FQ2 (Dec) sales to be at mid-point of its original guidance range of $4.2-4.4B but that adjusted EPS…

TEL: Positioned Well to Start the New Year

We reiterate our Outperform on the shares of TE Connectivity (TEL; $143.47) ahead of FQ1 (Dec) results and outlook, scheduled for next Wednesday (1/22 before market). Most importantly, we think TEL can at least live…

STX: Time for a Catch-Up Trade with Earnings

We think the shares of Seagate (STX; $94.34; O/P), which are down 16% since mid-October (vs. +2% for the S&P 500), remain oversold ahead of FQ2 (Dec) results and outlook, scheduled for Tuesday (1/21 after…