TE Connectivity Reports Strong Fiscal Fourth Quarter and Full Year 2024 Financial Results
TE Connectivity plc (NYSE: TEL), a leading global industrial technology company, reported its financial results for the fiscal fourth quarter and fiscal year ended September 27, 2024. The company delivered robust performance metrics aligning with or exceeding guidance.
Key Financial Metrics
| Metric | Q4 2024 | Q4 2023 | % Change YoY | Wall Street Estimates |
|---|---|---|---|---|
| Total Revenue | $4.1 billion | - | +1% | $4.02 billion |
| GAAP EPS | $0.90 | - | -49% | - |
| Adjusted EPS | $1.95 | $1.77 | +10% | $1.95 |
| Operating Margin | 16.0% | - | - | - |
| Adjusted Operating Margin | 18.6% | - | - | - |
| Cash Flow from Operations | $1 billion | - | - | - |
| Free Cash Flow | $833 million | - | - | - |
Interpretation : TE Connectivity's financial performance for Q4 2024 was robust, with total revenues surpassing guidance, reaching $4.1 billion. The adjusted EPS reached an all-time high of $1.95, reflecting a 10% increase year over year, although GAAP EPS was impacted by a tax-related event. The company achieved a record adjusted operating margin of 18.6%, indicating strong operational execution.
Revenue Performance by Segment
| Segment | FY 2024 Revenue | FY 2023 Revenue | % Change YoY | Previous Guidance |
|---|---|---|---|---|
| Communications | - | - | Growth | Provided, met growth |
| Transportation | - | - | Growth | - |
| Industrial | - | - | Growth in 3/4 segments | - |
Interpretation : TE Connectivity's segments showed significant growth, particularly in Communications and Transportation, driven by advancements in AI and next-generation automotive technologies. The Industrial segment also showed growth in three out of four business areas.
Key Developments and Operational Highlights - Record full-year GAAP EPS of $10.34 and adjusted EPS of $7.56, up 12% year over year. - Achieved record GAAP and adjusted operating margins for the full year, supported by strong performance across business units. - Returned approximately $2.8 billion to shareholders and invested $340 million in acquisitions to bolster strategic capabilities.
Comments from Company Officers CEO Terrence Curtin emphasized the successful close to the fiscal year, highlighting record adjusted EPS and operational margins. He reiterated the company's strength in automotive technologies, industrial growth, and its future focus on innovations in electrification and data connectivity.
Share Repurchase Program TE Connectivity's Board of Directors authorized a $2.5 billion increase in the company's share repurchase program, reinforcing its commitment to returning value to shareholders.
Forward Guidance For the first quarter of fiscal 2025, TE Connectivity anticipates revenues of approximately $3.9 billion, with GAAP EPS from continuing operations projected at $1.64 and adjusted EPS at $1.88. The company's restructuring into two reportable segments, Transportation Solutions and Industrial Solutions, will also take effect, with recast financial information scheduled for release later.
Stock Price Movement Following the earnings release, TE Connectivity's stock price experienced a modest increase of 0.79%.
Overall, TE Connectivity delivered strong quarterly and annual performance, demonstrating its resilience and agility in the evolving market landscape. The company's strategic initiatives and robust cash flow generation underpin its long-term growth trajectory.
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