TE Connectivity (TEL) to Report Q1 Earnings: What’s in Store?

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

For the to-be-reported quarter, it expects net sales of $3.85 billion, flat on both a reported and organic basis year over year.

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

The Zacks Consensus Estimate for revenues is pegged at $3.89 billion, suggesting growth of 1.2% year over year.

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

TE Connectivity Ltd. Price and EPS Surprise

TE Connectivity Ltd. price-eps-surprise | TE Connectivity Ltd. Quote

TE Connectivity beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, the average surprise being 3.72%.

Let’s see how things have shaped up for 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 growing proliferation of EVs and strong content trends in electronification is expected to have driven automotive sales, benefiting transportation solutions segment revenues.

TE Connectivity’s top line is expected to have benefited from improvements in commercial aerospace and solid momentum across renewable applications. Additionally, growing momentum across interventional procedures is likely to have aided medical sales.

However, sluggishness in sensor and commercial transportation businesses is expected to have impacted top-line growth negatively.

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

Our model estimate for industrial solutions sales is pegged 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.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That’s the exact case here.

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

Other Stocks to Consider

Here are a few other companies worth considering, as our model shows that these, too, have the right combination of elements to beat on earnings in their upcoming releases:

Apple AAPL has an Earnings ESP of +3.65% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Apple shares have gained 39.6% in the trailing 12-months. AAPL is set to report 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 gained 100.4% in the past year. FICO is set to report its first-quarter fiscal 2024 results on Jan 25.

Meta Platforms META has an Earnings ESP of +1.46% and a Zacks Rank #2.

Meta Platforms shares have jumped 176.3% in the past year. META is set to report its fourth-quarter 2023 results on Feb 1.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.