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Valued at a market cap of $45.2 billion, TE Connectivity plc (TEL) manufactures and sells connectivity and sensor solutions. The Switzerland-based company partners with customers in a broad array of industries, including consumer electronics, energy, healthcare, automotive, aerospace, and communication networks, and is expected to announce its fiscal Q4 earnings results before the market opens on Wednesday, Oct. 30.
Ahead of this event, analysts project the tech company to report a profit of $1.94 per share, up 9% from $1.78 per share in the year-ago quarter. The company has consistently surpassed Wall Street's bottom-line estimates in the last four quarters. Its adjusted earnings of $1.91 per share in the last quarter outpaced the consensus estimates by 2.7% and increased 8% from a year ago, thanks to the company’s 200 bps expansion in adjusted operating margin driven by strong operational performance.
For fiscal 2024, analysts expect TEL to report an EPS of $7.56, up 12.2% from $6.74 in fiscal 2023. Moreover, EPS is expected to increase 7.7% year-over-year to $8.14 in fiscal 2025.
Shares of TEL have gained almost 5.2% on a YTD basis, underperforming both the S&P 500 Index's ($SPX) 22.7% rise and the Technology Select Sector SPDR Fund’s (XLK) 20.5% return over the same period.
On Jul. 24, shares of TEL jumped 3.6% after its Q3 earnings release despite reporting revenues of $3.98 billion, which narrowly fell short of the consensus estimates of $4 billion. Nonetheless, the company’s Q3 adjusted EPS beat, coupled with significant operating margin expansion and 22% year-over-year growth in cash from operating activities to $2.4 billion, might have bolstered investor confidence and led to an upward price movement.
Analysts' consensus view on TE Connectivity’s stock is moderately optimistic, with a "Moderate Buy" rating overall. Among 15 analysts covering the stock, eight recommend "Strong Buy," and seven suggest "Hold." This configuration is more bullish than three months ago, with six analysts suggesting a "Strong Buy."
The average analyst price target for TEL is $169.93, indicating a 15% potential upside from the current levels.
On the date of publication, Neharika Jain 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.
