TE Connectivity Beats Q2 Earnings Estimates, Sees Growth in Orders Across All Segments
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 24 2024
0mins
Should l Buy TEL?
Source: earning
- Financial Performance: TE Connectivity Ltd reported a fiscal second-quarter 2024 net sales of $3.97 billion, down by 5% year-on-year but beating the consensus.
- Segment Revenue: Revenue from Transportation Solutions, Industrial Solutions, and Communications Solutions declined year-on-year.
- Margins and Cash Flow: The adjusted operating margin improved, generating $1.1 billion in free cash flow with $1.18 billion in cash and equivalents.
- Outlook: TEL expects third-quarter net sales below consensus and adjusted EPS lower than expected.
- Stock Information: TE Connectivity stock gained 12% in the last 12 months, trading lower premarket at $142.00.
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Analyst Views on TEL
Wall Street analysts forecast TEL stock price to rise
10 Analyst Rating
7 Buy
3 Hold
0 Sell
Moderate Buy
Current: 205.280
Low
240.00
Averages
270.70
High
297.00
Current: 205.280
Low
240.00
Averages
270.70
High
297.00
About TEL
TE Connectivity plc is a global industrial technology company. The Company's range of connectivity and sensor solutions enable the distribution of power, signal, and data to advance next-generation transportation, energy networks, automated factories, data centers enabling artificial intelligence, and more. Its segments include Transportation Solutions and Industrial Solutions. Transportation Solutions segment includes its automotive, commercial transportation, and sensor businesses. The Industrial Solutions segment includes digital data networks; automation and connected living; aerospace, defense, and marine, and energy. Its services and training include 3D Printing for Production (3D4P), Backshells Prototyping - BIT Workx, Electrical Installation Trainings, HarnWare Software, Machine Tooling Service & Repair, Medical Device Design Services, Microfluidic Devices, THE ACADEMY - Automotive Webinars, and Sensor Manufacturing Services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
TE Connectivity Named to Dow Jones Best-In-Class Index for 14th Year
- Sustainability Recognition: TE Connectivity has been named to the Dow Jones Best-In-Class Index for the 14th consecutive year, indicating its performance in sustainability and governance is in the top 20% of its industry, which not only enhances the company's brand image but also attracts more customers and investors focused on sustainable investments.
- Corporate Responsibility Strategy: Driven by its One Connected World corporate responsibility strategy, TE exceeded several goals in renewable energy, hazardous waste reduction, and water use over the past year, demonstrating a strong commitment to environmental protection and sustainability.
- Employee Engagement and Culture: CEO Terrence Curtin emphasized that TE's sustainability priorities reflect not only customer and employee expectations but also corporate responsibility, with the collective efforts of 90,000 employees driving meaningful and lasting change, thereby enhancing corporate culture and employee cohesion.
- Global Impact: Operating in approximately 130 countries with over 90,000 employees, including 10,000 engineers, TE Connectivity's broad range of connectivity and sensor solutions advances future transportation, energy networks, and automated factories, further solidifying its leadership position in the global market.
See More
TE Connectivity Named to Dow Jones Best-In-Class Index for 14th Year
- Sustainability Recognition: TE Connectivity has been named to the Dow Jones Best-In-Class Index for the 14th consecutive year, indicating its position in the top 20% of industry peers based on economic, environmental, and social criteria, which enhances brand image and attracts sustainability-focused investors.
- Corporate Responsibility Strategy: The company's One Connected World strategy has led to exceeding goals in renewable energy, hazardous waste reduction, and water use, demonstrating a strong commitment to sustainability that enhances its competitive edge in the market.
- Employee Engagement and Culture: CEO Terrence Curtin emphasized that prioritizing sustainability meets the expectations of investors and customers while being integral to corporate culture, with 90,000 employees uniting to drive meaningful, lasting change.
- Global Impact: Operating in approximately 130 countries, TE Connectivity leverages its extensive connectivity and sensor solutions to advance next-generation transportation, energy networks, and automated factories, further solidifying its position as a global industrial technology leader.
See More
Telenor Reports Q1 Earnings Below Analysts' Expectations Amid Nordic Slowdown
- Earnings Decline: Telenor's adjusted EBITDA for Q1 was 8.05 billion Norwegian crowns (approximately $864.6 million), falling short of analysts' expectations of 8.25 billion crowns, reflecting a slowdown in growth in the Nordics, particularly in Finland, which poses greater market pressures on the company.
- Market Challenges: The operational environment in Bangladesh also presents challenges, exacerbating the overall performance decline and highlighting the company's vulnerability in diversified markets, which may impact future growth potential.
- Strategic Transformation: CEO Benedicte Schilbred Fasmer stated that the company is committed to simplifying its group portfolio and gradually transitioning to a more Nordic-centric company, a strategy aimed at enhancing financial strength and increasing shareholder returns.
- Capital Return Commitment: Despite performance pressures, Telenor remains committed to increasing capital returns to shareholders, indicating that while adjusting its strategy, the company still prioritizes shareholder interests and aims for sustainable growth in the future.
See More
TE Connectivity Faces Stock Drop After Mixed Q2 Earnings Report
- Mixed Earnings Report: TE Connectivity reported non-GAAP earnings of $2.73 per share, exceeding analyst expectations by $0.03, but its sales of $4.74 billion fell short of consensus by $20 million, leading to a 12.8% stock drop despite broader market gains.
- Year-over-Year Growth: Overall revenue increased approximately 14.5% year-over-year, bolstered by acquisitions, while organic revenue grew by 7%, indicating some resilience in the company's market position despite the sales miss.
- Guidance Outlook: The company's guidance for adjusted earnings of about $2.83 surpassed the average analyst estimate of $2.79, yet the projected 10% year-over-year sales growth suggests a significant sequential deceleration, which may dampen investor sentiment.
- Organic Growth Improvement: While overall sales expectations are weak, TE anticipates a 9% year-over-year organic revenue growth, representing an improvement over fiscal Q2, indicating strong market demand in specific areas that could support future growth.
See More
TE Connectivity Reports Mixed Q2 Results with Earnings Beat but Sales Miss
- Earnings Highlights: TE Connectivity reported adjusted earnings of $2.73 per share for fiscal Q2 2023, exceeding analyst expectations by $0.03, with sales of $4.74 billion reflecting a 14.5% year-over-year increase, yet falling short of forecasts by $20 million, indicating potential market demand weakness.
- Sales Guidance Reaction: While the company guided for adjusted earnings of $2.83 for the current quarter, surpassing the $2.79 analyst estimate, the projected 10% year-over-year sales growth suggests a significant sequential deceleration, raising investor concerns about future sales outlook.
- Stock Price Volatility: Following the earnings report, TE Connectivity's stock price fell 12.8% over the week, contrasting with a 0.5% gain in the S&P 500 and a 1.5% rise in the Nasdaq Composite, reflecting a negative market reaction to the sales shortfall.
- Annual Performance: Despite the recent stock decline, TE Connectivity's shares have risen approximately 50% over the past year, demonstrating long-term investor confidence in the company's fundamentals, although the short-term sales guidance miss may impact future investment decisions.
See More
U.S. Stocks Rise, Nasdaq Hits Record High
- Nasdaq Hits Record High: The Nasdaq 100 rose by 1.73%, reaching a new record high, reflecting strong investor confidence in tech stocks, particularly driven by robust corporate earnings, which may attract further investment in the tech sector.
- Earnings Beat Expectations: Companies like GE, Boeing, and Masco reported Q1 revenues of $9.34 billion, negative $1.45 billion, and $1.92 billion respectively, all exceeding market expectations, which boosted overall market sentiment and indicated signs of economic recovery.
- Oil Price Surge Affects Markets: WTI crude oil prices rose over 3% due to the blockade of the Strait of Hormuz, potentially exacerbating the global energy crisis and influencing market inflation expectations, thereby affecting investor risk appetite.
- Mortgage Applications Increase: U.S. MBA mortgage applications rose by 7.9% in the week ending April 17, with the purchase mortgage sub-index up 10.1%, indicating a rebound in housing demand that could positively impact the real estate market.
See More
TE Connectivity Named to Dow Jones Best-In-Class Index for 14th Year
- Sustainability Recognition: TE Connectivity has been named to the Dow Jones Best-In-Class Index for the 14th consecutive year, indicating its performance in sustainability and governance is in the top 20% of its industry, which not only enhances the company's brand image but also attracts more customers and investors focused on sustainable investments.
- Corporate Responsibility Strategy: Driven by its One Connected World corporate responsibility strategy, TE exceeded several goals in renewable energy, hazardous waste reduction, and water use over the past year, demonstrating a strong commitment to environmental protection and sustainability.
- Employee Engagement and Culture: CEO Terrence Curtin emphasized that TE's sustainability priorities reflect not only customer and employee expectations but also corporate responsibility, with the collective efforts of 90,000 employees driving meaningful and lasting change, thereby enhancing corporate culture and employee cohesion.
- Global Impact: Operating in approximately 130 countries with over 90,000 employees, including 10,000 engineers, TE Connectivity's broad range of connectivity and sensor solutions advances future transportation, energy networks, and automated factories, further solidifying its leadership position in the global market.
See More
TE Connectivity Named to Dow Jones Best-In-Class Index for 14th Year
- Sustainability Recognition: TE Connectivity has been named to the Dow Jones Best-In-Class Index for the 14th consecutive year, indicating its position in the top 20% of industry peers based on economic, environmental, and social criteria, which enhances brand image and attracts sustainability-focused investors.
- Corporate Responsibility Strategy: The company's One Connected World strategy has led to exceeding goals in renewable energy, hazardous waste reduction, and water use, demonstrating a strong commitment to sustainability that enhances its competitive edge in the market.
- Employee Engagement and Culture: CEO Terrence Curtin emphasized that prioritizing sustainability meets the expectations of investors and customers while being integral to corporate culture, with 90,000 employees uniting to drive meaningful, lasting change.
- Global Impact: Operating in approximately 130 countries, TE Connectivity leverages its extensive connectivity and sensor solutions to advance next-generation transportation, energy networks, and automated factories, further solidifying its position as a global industrial technology leader.
See More
Telenor Reports Q1 Earnings Below Analysts' Expectations Amid Nordic Slowdown
- Earnings Decline: Telenor's adjusted EBITDA for Q1 was 8.05 billion Norwegian crowns (approximately $864.6 million), falling short of analysts' expectations of 8.25 billion crowns, reflecting a slowdown in growth in the Nordics, particularly in Finland, which poses greater market pressures on the company.
- Market Challenges: The operational environment in Bangladesh also presents challenges, exacerbating the overall performance decline and highlighting the company's vulnerability in diversified markets, which may impact future growth potential.
- Strategic Transformation: CEO Benedicte Schilbred Fasmer stated that the company is committed to simplifying its group portfolio and gradually transitioning to a more Nordic-centric company, a strategy aimed at enhancing financial strength and increasing shareholder returns.
- Capital Return Commitment: Despite performance pressures, Telenor remains committed to increasing capital returns to shareholders, indicating that while adjusting its strategy, the company still prioritizes shareholder interests and aims for sustainable growth in the future.
See More
TE Connectivity Faces Stock Drop After Mixed Q2 Earnings Report
- Mixed Earnings Report: TE Connectivity reported non-GAAP earnings of $2.73 per share, exceeding analyst expectations by $0.03, but its sales of $4.74 billion fell short of consensus by $20 million, leading to a 12.8% stock drop despite broader market gains.
- Year-over-Year Growth: Overall revenue increased approximately 14.5% year-over-year, bolstered by acquisitions, while organic revenue grew by 7%, indicating some resilience in the company's market position despite the sales miss.
- Guidance Outlook: The company's guidance for adjusted earnings of about $2.83 surpassed the average analyst estimate of $2.79, yet the projected 10% year-over-year sales growth suggests a significant sequential deceleration, which may dampen investor sentiment.
- Organic Growth Improvement: While overall sales expectations are weak, TE anticipates a 9% year-over-year organic revenue growth, representing an improvement over fiscal Q2, indicating strong market demand in specific areas that could support future growth.
See More
TE Connectivity Reports Mixed Q2 Results with Earnings Beat but Sales Miss
- Earnings Highlights: TE Connectivity reported adjusted earnings of $2.73 per share for fiscal Q2 2023, exceeding analyst expectations by $0.03, with sales of $4.74 billion reflecting a 14.5% year-over-year increase, yet falling short of forecasts by $20 million, indicating potential market demand weakness.
- Sales Guidance Reaction: While the company guided for adjusted earnings of $2.83 for the current quarter, surpassing the $2.79 analyst estimate, the projected 10% year-over-year sales growth suggests a significant sequential deceleration, raising investor concerns about future sales outlook.
- Stock Price Volatility: Following the earnings report, TE Connectivity's stock price fell 12.8% over the week, contrasting with a 0.5% gain in the S&P 500 and a 1.5% rise in the Nasdaq Composite, reflecting a negative market reaction to the sales shortfall.
- Annual Performance: Despite the recent stock decline, TE Connectivity's shares have risen approximately 50% over the past year, demonstrating long-term investor confidence in the company's fundamentals, although the short-term sales guidance miss may impact future investment decisions.
See More
U.S. Stocks Rise, Nasdaq Hits Record High
- Nasdaq Hits Record High: The Nasdaq 100 rose by 1.73%, reaching a new record high, reflecting strong investor confidence in tech stocks, particularly driven by robust corporate earnings, which may attract further investment in the tech sector.
- Earnings Beat Expectations: Companies like GE, Boeing, and Masco reported Q1 revenues of $9.34 billion, negative $1.45 billion, and $1.92 billion respectively, all exceeding market expectations, which boosted overall market sentiment and indicated signs of economic recovery.
- Oil Price Surge Affects Markets: WTI crude oil prices rose over 3% due to the blockade of the Strait of Hormuz, potentially exacerbating the global energy crisis and influencing market inflation expectations, thereby affecting investor risk appetite.
- Mortgage Applications Increase: U.S. MBA mortgage applications rose by 7.9% in the week ending April 17, with the purchase mortgage sub-index up 10.1%, indicating a rebound in housing demand that could positively impact the real estate market.
See More
