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With a market cap of $42.1 billion, Ballybrit, Ireland-based TE Connectivity plc (TEL) is a global leader in connectivity and sensor solutions. Operating through three segments - Transportation Solutions; Industrial Solutions; and Communication Solutions, it designs and manufactures products that connect and protect the flow of power and data across diverse industries, including automotive, aerospace, healthcare, and energy. It is set to unveil its fiscal Q1 2025 earnings results on Friday, Jan. 22.
Ahead of this event, analysts expect the electronics maker to report a profit of $1.89 per share, up 2.7% from $1.84 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in the past four quarters. In the most recent quarter, TEL met the consensus EPS estimate.
For fiscal 2025, analysts expect TEL to report EPS of $8.14, up 7.7% from $7.56 in fiscal 2024. Looking forward to fiscal 2026, EPS is expected to grow 9.8% year-over-year to $8.94.
TEL has underperformed the broader markets over the past 52 weeks, with shares up 1.2%, compared to the S&P 500 Index's ($SPX) 23.7% gain and the Technology Select Sector SPDR Fund's (XLK) 23.8% return over the period.
While the company delivered record Q4 adjusted EPS of $1.95 and exceeded revenue forecasts at $4.1 billion, shares of TE Connectivity fell marginally on Oct. 30 due to concerns over its significant 49% year-over-year drop in GAAP EPS, largely attributed to a one-time tax-related impact of $0.78. Additionally, concerns arose from guidance for Q1 FY25 net sales of around $3.9 billion and adjusted EPS of $1.88, which reflected tax headwinds and suggested modest growth compared to prior performance. The market also reacted cautiously to the reorganization of segments, as it could signal strategic shifts requiring further evaluation.
Analysts' consensus rating on TEL stock is cautiously optimistic, with a "Moderate Buy" rating overall. Out of 15 analysts covering the stock, opinions include eight "Strong Buys” and seven "Holds." As of writing, TEL is trading below the average analyst price target of $168.20.
