TEL Earnings Prediction
The chart below shows how TEL performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TEL sees a -1.75% change in stock price 10 days leading up to the earnings, and a +1.03% change 10 days following the report. On the earnings day itself, the stock moves by +0.66%. This data can give you a slight idea of what to expect for the next quarter's release.
TEL Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
4.07B
0.82%
2.24%
Gross Margin
34.00%
6.75%
-2.38%
Operating Margin
18.56%
7.16%
-3.58%
Net Margin
6.78%
-50.55%
-52.92%
EPS
0.90
-48.86%
-51.61%
No Data Available
TEL Earnings Analysis
TE Connectivity Ltd Corporation (TEL.N) Earnings Conference Call
Positive
Strong Q4 Sales Performance: Q4 sales reached $4.1 billion, exceeding guidance and reflecting a 2% organic growth year-over-year, driven by the Communications segment's strong performance in AI applications.
Record Adjusted EPS Growth: Adjusted earnings per share for Q4 were $1.95, a quarterly record and a 10% increase compared to the previous year, surpassing guidance.
Operating Margin Improvement: Full year adjusted operating margins improved to 18.9%, representing a 220 basis point increase year-over-year, showcasing strong operational performance across segments.
Record Free Cash Flow: Free cash flow for fiscal 2024 reached a record $2.8 billion, up 17% year-over-year, demonstrating a 120% conversion rate to adjusted net income.
Share Repurchase Program Increase: The Board authorized a $2.5 billion increase to the share repurchase program, reinforcing the commitment to return capital to shareholders and support long-term value creation.
Negative
Auto Production Trends: Global auto production was flat in fiscal 2024, with a slight decline expected in fiscal 2025, indicating ongoing challenges in the transportation segment.
Industrial Equipment Decline: The industrial equipment business experienced a significant decline of 20% organically in Q4, reflecting persistent weakness in the industrial markets.
Restructuring Charges Impact: Adjusted operating income for Q4 included $99 million in restructuring and other charges, highlighting ongoing costs associated with operational adjustments.
Restructuring Charges Overview: Restructuring charges for the full year reached $144 million, with expectations for similar charges in fiscal 2025, indicating continued operational challenges.
Sensors Business Challenges: The sensors business faced market weakness and portfolio optimization efforts, leading to a decline in sales and expected exits that will impact future performance.
TEL FAQs
How does TEL typically perform around its earnings report dates?
Is Earnings call transcript: TE Connectivity Q4 2024 beats EPS, stock rises positive or negative?
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TEL Earning Call Sentiment
Earnings call transcript: TE Connectivity Q4 2024 beats EPS, stock rises
TEL.N
-2.87%Positive
The earnings call reflects positive sentiment due to strong financial performance, including a 10% increase in Q4 EPS and expanded operating margins. The company's AI revenue is expected to double, and a significant share repurchase program is authorized, enhancing shareholder returns. Despite some risks like global auto production decline and supply chain challenges, the overall outlook, including optimistic guidance and strategic focus on growth areas, suggests a positive market reaction.