TE Connectivity (TEL) Earnings Preview: What to Expect on October 30th
Get ready for a crucial earnings announcement as TE Connectivity (TEL), a leading provider of connectivity and sensor solutions, prepares to release its quarterly financial report on Wednesday, October 30th. Investors are keenly awaiting this release, hoping for positive news on both earnings performance and future guidance.
Analyst Expectations and Market Sentiment
Analysts are anticipating TE Connectivity to report earnings per share (EPS) of $1.94. While meeting or exceeding this estimate is important, investors will also closely watch for guidance on the company’s performance in the upcoming quarter. This guidance often dictates market reactions, even more so than the actual earnings results.
Past Performance and Share Price Trends
In the previous earnings release, TE Connectivity surpassed EPS expectations by $0.05, yet the share price experienced a 1.47% decline in the following trading session. This highlights the potential for unexpected market reactions, regardless of a positive earnings report. Here’s a look at TE Connectivity’s past performance and the corresponding share price changes:
| Quarter | EPS Estimate | EPS Actual | Price Change (%) |
|———|————–|————|——————|
| Q3 2024 | 1.86 | 1.91 | -1.0% |
| Q2 2024 | 1.83 | 1.86 | 0.0% |
| Q1 2024 | 1.71 | 1.84 | 0.0% |
| Q4 2023 | 1.76 | 1.78 | 1.0% |
As of October 28th, TE Connectivity shares were trading at $150.87. Over the past 52 weeks, the stock has seen a 23.52% increase, indicating bullish sentiment among long-term investors.
Analyst Perspectives and Peer Comparisons
Understanding market sentiment and expectations within the industry is crucial for investors. TE Connectivity currently holds a consensus rating of “Buy” from 3 analysts. The average one-year price target is $165.67, suggesting a potential upside of 9.81%.
To gain further insights, let’s compare TE Connectivity with its industry peers: Jabil, Flex, and Fabrinet.
| Company | Consensus Rating | Average 1-Year Price Target | Potential Upside (%) |
|—————-|——————-|——————————|———————–|
| TE Connectivity | Buy | $165.67 | 9.81 |
| Jabil | Buy | $142.0 | -5.88 |
| Flex | Outperform | $41.0 | -72.82 |
| Fabrinet | Neutral | $256.2 | 69.82 |
This analysis reveals that while analysts are bullish on TE Connectivity, their outlook is mixed for its competitors.
Key Takeaways from Peer Analysis
| Company | Revenue Growth (%) | Gross Profit ($B) | Return on Equity (%) |
|—————-|———————|——————-|———————–|
| TE Connectivity | -0.48 | 1.39 | 4.57 |
| Jabil | 2.94 | 0.61 | 6.88 |
| Flex | -8.39 | 0.47 | 2.69 |
| Fabrinet | 14.85 | 0.09 | 4.76 |
TE Connectivity stands out with its top ranking in Gross Profit and Return on Equity among its peers. While its revenue growth is lagging, it still surpasses the average within the Information Technology sector.
A Closer Look at TE Connectivity’s Financial Performance
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Market Capitalization:
TE Connectivity boasts a significant market capitalization, surpassing industry averages, which is a strong indicator of its size and market recognition.*
Revenue Growth:
Over the past three months, TE Connectivity faced challenges in revenue growth, experiencing a decline of approximately -0.48% as of June 30, 2024. However, this growth rate still exceeds the average among its peers in the Information Technology sector.*
Net Margin:
TE Connectivity shines with an impressive net margin of 14.4%, surpassing industry averages, demonstrating strong profitability and effective cost control.*
Return on Equity (ROE):
TE Connectivity’s ROE is another standout, exceeding industry benchmarks at 4.57%, showcasing efficient utilization of equity capital.*
Return on Assets (ROA):
TE Connectivity’s ROA also excels, reaching 2.51%, indicating efficient asset management and strong financial health.*
Debt Management:
TE Connectivity maintains a below-average debt-to-equity ratio of 0.33, reflecting a prudent financial strategy and balanced approach to debt management.About TE Connectivity
TE Connectivity is a global leader in the electrical connector industry, providing interconnect and sensor solutions to the transportation, industrial, and communications markets. With operations in 150 countries and over 500,000 stock-keeping units, TE Connectivity possesses a vast portfolio that forms the electrical architecture of its customers’ cutting-edge innovations.
Stay Informed with TE Connectivity’s Earnings Calendar
To keep track of all earnings releases for TE Connectivity, visit their earnings calendar on our site. This will provide you with the latest information on their upcoming financial reports and help you stay informed about the company’s performance.