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Valued at $45.8 billion by market cap and headquartered in Switzerland, TE Connectivity Ltd. (TEL) is a leading manufacturer specializing in products that facilitate the seamless transmission and protection of power and data. With partnerships spanning consumer electronics, energy, healthcare, automotive, aerospace, and communication networks, TE Connectivity operates through three core segments: Transportation Solutions, Industrial Solutions, and Communication Solutions. The company is set to announce its Q3 earnings for fiscal 2024 on Wednesday, Jul. 24.
Ahead of the event, analysts expect TE Connectivity to report a profit of $1.86 per share, up 5.1% from $1.77 per share in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in each of the last four quarters.
TE Connectivity's robust margin expansion across its three segments and improved order volumes sequentially helped its EPS for the last quarter to rise 12.7% year over year to $1.86, surpassing the consensus estimate by 1.6%.
Looking ahead, analysts expect TE Connectivity to report an EPS of $7.50 in fiscal 2024, up 11.3% from $6.74 in fiscal year 2023. Its fiscal 2025 EPS is projected to rise 10% year over year to $8.25.
TEL stock has rallied 7.7% over the past 52 weeks, underperforming the broader S&P 500 Index's ($SPX) 26.6% gains and the Technology Select Sector SPDR Fund’s (XLK) 36.8% returns over the same time frame.
Despite macroeconomic headwinds dimming its price performance, TE Connectivity has benefited this year due to enhanced operational efficiency, robust demand for its products, and strategic investments in key growth areas like hybrid and electric vehicles, renewable energy, and artificial intelligence. The company also boasts an impressive streak of 9 consecutive years of dividend increases.
Moreover, the stock rose marginally after its Q2 earnings results on Apr. 24, topping both topline and bottom-line estimates thanks to its better-than-expected profit fueled by strong demand for its sensor technology from EV makers worldwide and a solid performance in its transportation solutions segment.
The consensus view on TE Connectivity stock is “Moderate Buy” overall. Among the 12 analysts covering the stock, six recommend a "Strong Buy," and the remaining six advise a "Hold." On top of that, the average analyst price target for TE Connectivity is $162.82, indicating a potential upside of 9% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
