TE Connectivity's stock experienced a pre-market plunge of 5.75% on Wednesday, as investors reacted to the company's latest earnings report and a significant acquisition announcement.

The Swiss-American electronics manufacturer reported fiscal third-quarter adjusted earnings of $2.94 per share, surpassing analyst estimates of $2.85. Net sales for the quarter reached $5.16 billion, also exceeding expectations of $5.01 billion and representing a 14% year-over-year increase. For the fourth quarter, TE Connectivity provided guidance above consensus, forecasting adjusted EPS of approximately $3.05 on revenue of about $5.25 billion.

Despite the strong earnings performance, the company simultaneously announced it has entered into an agreement to acquire Astrodyne TDI from Tinicum L.P. for approximately $1.40 billion. The acquisition is expected to close by year-end and is projected to contribute annual sales of over $250 million. Market participants appear to be weighing the positive earnings results against the substantial capital outlay for the acquisition, potentially concerned about integration risks or the impact on the company's balance sheet.