Earnings Preview For TE Connectivity

TE Connectivity TEL will release its quarterly earnings report on Wednesday, 2024-10-30. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate TE Connectivity to report an earnings per share (EPS) of $1.94.

Anticipation surrounds TE Connectivity's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Performance in Previous Earnings

In the previous earnings release, the company beat EPS by $0.05, leading to a 1.47% drop in the share price the following trading session.

Here's a look at TE Connectivity's past performance and the resulting price change:

Stock Performance

Shares of TE Connectivity were trading at $150.87 as of October 28. Over the last 52-week period, shares are up 23.52%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Perspectives on TE Connectivity

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding TE Connectivity.

With 3 analyst ratings, TE Connectivity has a consensus rating of Buy. The average one-year price target is $165.67, indicating a potential 9.81% upside.

Comparing Ratings with Competitors

In this comparison, we explore the analyst ratings and average 1-year price targets of Jabil, Flex and Fabrinet, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• The prevailing sentiment among analysts is an Buy trajectory for Jabil, with an average 1-year price target of $142.0, implying a potential 5.88% downside.
• The prevailing sentiment among analysts is an Outperform trajectory for Flex, with an average 1-year price target of $41.0, implying a potential 72.82% downside.
• The consensus outlook from analysts is an Neutral trajectory for Fabrinet, with an average 1-year price target of $256.2, indicating a potential 69.82% upside.

Insights: Peer Analysis

The peer analysis summary presents essential metrics for Jabil, Flex and Fabrinet, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

TE Connectivity is positioned at the top for Gross Profit and Return on Equity among its peers. It is in the middle for Revenue Growth.

Get to Know TE Connectivity Better

TE Connectivity is the largest electrical connector supplier in the world, supplying interconnect and sensor solutions to the transportation, industrial, and communications markets. With operations in 150 countries and over 500,000 stock-keeping units, TE has a broad portfolio that forms the electrical architecture of its end customers' cutting-edge innovations.

A Deep Dive into TE Connectivity's Financials

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Challenges: TE Connectivity's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -0.48%. This indicates a decrease in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 14.4%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 4.57%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): TE Connectivity's ROA excels beyond industry benchmarks, reaching 2.51%. This signifies efficient management of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 0.33, TE Connectivity adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for TE Connectivity visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.