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Insight into TE Connectivity (TEL) First-Quarter Fiscal 2024 EarningsInsight into TE Connectivity (TEL) First-Quarter Fiscal 2024 Earnings

TE Connectivity Ltd TEL is set to announce its first-quarter fiscal 2024 results on Jan 24.

For the upcoming quarter, it foresees net sales of $3.85 billion, remaining flat on both a reported and organic basis year over year.

Adjusted earnings are anticipated at $1.70 per share, depicting growth of more than 10% year over year.

The Zacks Consensus Estimate for revenues stands at $3.89 billion, signifying a 1.2% increase year over year.

The consensus mark for fiscal first-quarter earnings has ascended by a penny to $1.72 per share over the past 30 days, suggesting year-over-year growth of 12.42%.

TE Connectivity Ltd. Performance and Expectations

TE Connectivity has surpassed the Zacks Consensus Estimate for earnings in the last four quarters, with an average surprise of 3.72%.

Let’s delve into the factors that have influenced the upcoming announcement.

Factors to Note

TE Connectivity’s fiscal first-quarter results are expected to have benefited from the well-performing transportation solutions segment. The burgeoning usage of EVs and robust content trends in electronification is projected to have bolstered automotive sales, thereby benefiting transportation solutions segment revenues.

TE Connectivity’s top line is anticipated to have benefited from advancements in commercial aerospace and solid momentum across renewable applications. Moreover, the escalating demand for interventional procedures is likely to have supported medical sales.

However, sluggishness in sensor and commercial transportation businesses is expected to have had an adverse impact on top-line growth.

Our model estimate for the Transportation segment sales is pegged at $2.35 billion, suggesting a 4.1% increase year over year.

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Our model estimate for industrial solutions sales is set at $1.08 billion, indicating 1.5% year-over-year growth.

Our model estimate for Communication segment sales is pegged at $422.4 million, indicating a decline of 19.1% from the year-ago quarter’s reported figure.

Insight from the Model

Based on the Zacks model, the amalgamation of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) augments the likelihood of an earnings beat. That’s the precise situation here.

TE Connectivity currently has an Earnings ESP of +1.13% and a Zacks Rank #3. Investors can use Earnings ESP Filter to analyze the best stocks to buy or sell before they’re reported.

Other Stocks to Consider

Several other companies are worth considering as our model acknowledges that they also possess the right combination of elements to outdo earnings estimates in their imminent releases:

Apple AAPL has an Earnings ESP of +3.65% and a Zacks Rank #2 currently. Apple shares have surged 39.6% over the past 12 months. AAPL is set to announce its first-quarter fiscal 2024 results on Feb 1.

Fair Isaac FICO has an Earnings ESP of +1.73% and a Zacks Rank #2. Fair Isaac shares have climbed by 100.4% in the past year. FICO is set to announce its first-quarter fiscal 2024 results on Jan 25.

Meta Platforms META boasts an Earnings ESP of +1.46% and a Zacks Rank #2. Meta Platforms shares have surged 176.3% in the past year. META is set to announce its fourth-quarter 2023 results on Feb 1.

Keep track of forthcoming earnings announcements with the Zacks Earnings Calendar.