TE Connectivity Readies for Fourth-Quarter Earnings Report
TE Connectivity (TEL) is set to announce its fourth-quarter fiscal 2024 results on Oct. 30.
Projected Sales and Earnings
For this quarter, TE Connectivity anticipates net sales of $4 billion, showing year-over-year organic growth primarily due to the Transportation and Communications sectors.
The Zacks Consensus Estimate predicts revenues of $4.01 billion, indicating a slight year-over-year decline of 0.72%.
Adjusted earnings are expected to reach $1.94 per share, reflecting a year-over-year growth of 9%. Over the last month, the consensus for fourth-quarter earnings has remained at $1.95 per share, which represents a 9.55% increase compared to last year.
TE Connectivity has consistently outperformed the Zacks Consensus Estimate for earnings in the past four quarters, averaging a surprise of 3.11%.
TE Connectivity Ltd. Price and EPS Surprise
TE Connectivity Ltd. price-eps-surprise | TE Connectivity Ltd. Quote
Now, let’s examine what factors could influence the upcoming announcements.
Key Factors for TEL’s Q4 Performance
The Transportation segment is likely benefiting from a robust backlog in the automotive industry, while the Communications sector is expected to see growth due to record orders linked to their strong involvement in AI programs with various clients.
The recovering automotive market is anticipated to positively impact the Transportation segment this quarter, with growth in China counterbalancing weaknesses observed in Europe.
However, concerns remain regarding a sluggish performance in the Commercial Transportation sector, which is likely to persist into this quarter.
Additionally, a downturn in the industrial equipment market is expected to hamper TE Connectivity’s overall revenue growth.
Earnings Expectations Based on Zacks Model
According to the Zacks model, a positive Earnings ESP combined with a Zacks Rank of #1 (Strong Buy), #2 (Buy), or #3 (Hold) raises the chances of an earnings surprise. Currently, TE Connectivity has an Earnings ESP of +0.19% and holds a Zacks Rank of #3.
Other Companies to Watch
Several other companies also show promising signs based on our model and may see positive earnings surprises as well :
Meta Platforms (META) has an Earnings ESP of +2.83% and a Zacks Rank of #2. META has gained 60.9% year to date and will report its third-quarter results on Oct. 30.
Check Point Software (CHKP) reports an Earnings ESP of +1.26% with a Zacks Rank of #2. CHKP shares have risen 34.4% year to date, with results expected on Oct. 29.
Garmin (GRMN) also shows an Earnings ESP of +1.03% and a Zacks Rank of #2, with shares up 27.8% year to date. GRMN’s earnings report is due on Oct. 30.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
