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What's in the Store for TE Connectivity's (TEL) Q1 Earnings?
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TE Connectivity Ltd. (TEL - Free Report) is scheduled to report first-quarter fiscal 2023 results on Jan 25.
For the fiscal first quarter, TEL expects net sales of $3.75 billion, suggesting 2% and 9% growth on a reported and organic basis, respectively, from the corresponding year-ago fiscal quarter’s readings. The Zacks Consensus Estimate for the same is pegged at $3.76 billion, suggesting a decline of 1.6% from the year-ago fiscal quarter’s reported figure.
TE Connectivity expects adjusted earnings of $1.50 per share. The Zacks Consensus Estimate for the same is also pegged at $1.51 per share, indicating a fall of 14.2% from the year-ago quarter’s reported figure.
TE Connectivity’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 5.33%.
The impacts of TE Connectivity’s footprint-consolidation plans, stringent cost-cutting strategies and growing momentum across industrial, communications and transportation segments are expected to get reflected in the quarterly results.
Strong momentum across factory automation applications is expected to have driven growth in the company’s industrial equipment sales in the fiscal third quarter. Strength across renewable energy applications is anticipated to have aided the energy business. Solid momentum among interventional procedures is likely to have driven its medical sales growth. These factors are expected to have benefited the industrial segment in the quarter under discussion.
In the communication segment, strengthening momentum across data and devices is anticipated to have acted as a tailwind in the quarter under review. The growing traction across high-speed solutions for cloud applications is likely to have been another key catalyst.
However, weakening momentum across the appliance business might have been a concern.
Increasing overall auto production, along with the growing production of hybrid and electric vehicles, is likely to have contributed well to the sales growth of the company’s transportation segment in the to-be-reported quarter. Solid content growth is expected to have driven commercial transportation sales growth in the quarter under review.
However, sluggish demand for sensors is likely to have been a headwind for the transportation segment. Supply-chain disruptions induced by the ongoing pandemic are expected to be reflected in the to-be-reported quarterly results.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for TE Connectivity this time around. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
TE Connectivity has an Earnings ESP of 0.00% and a Zacks Rank #3.
Stocks to Consider
Here are some stocks that you may consider, as our model shows that they have the right combination of elements to beat on earnings this season.
MSCI is scheduled to release fourth-quarter 2022 results on Jan 31. The Zacks Consensus Estimate for MSCI’s earnings is pegged at $2.71 per share, suggesting an increase of 7.97% from the prior-year quarter’s reported figure.
Endava (DAVA - Free Report) has an Earnings ESP of +1.97% and a Zacks Rank #3 at present.
Endava is set to report second-quarter fiscal 2023 results on Feb 15. The Zacks Consensus Estimate for DAVA’s earnings is pegged at 68 cents per share, suggesting an increase of 7.94% from the prior-year fiscal period’s reported figure.
Analog Devices (ADI - Free Report) has an Earnings ESP of +2.99% and a Zacks Rank #3 at present.
Analog Devices is scheduled to release first-quarter fiscal 2023 results on Feb 15. The Zacks Consensus Estimate for ADI’s earnings is pegged at $2.59 per share, suggesting an increase of 33.5% from the prior-year fiscal quarter’s reported figure.
Image: Bigstock
What's in the Store for TE Connectivity's (TEL) Q1 Earnings?
TE Connectivity Ltd. (TEL - Free Report) is scheduled to report first-quarter fiscal 2023 results on Jan 25.
For the fiscal first quarter, TEL expects net sales of $3.75 billion, suggesting 2% and 9% growth on a reported and organic basis, respectively, from the corresponding year-ago fiscal quarter’s readings. The Zacks Consensus Estimate for the same is pegged at $3.76 billion, suggesting a decline of 1.6% from the year-ago fiscal quarter’s reported figure.
TE Connectivity expects adjusted earnings of $1.50 per share. The Zacks Consensus Estimate for the same is also pegged at $1.51 per share, indicating a fall of 14.2% from the year-ago quarter’s reported figure.
TE Connectivity’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average being 5.33%.
TE Connectivity Ltd. Price and EPS Surprise
TE Connectivity Ltd. price-eps-surprise | TE Connectivity Ltd. Quote
Key Factors to Note
The impacts of TE Connectivity’s footprint-consolidation plans, stringent cost-cutting strategies and growing momentum across industrial, communications and transportation segments are expected to get reflected in the quarterly results.
Strong momentum across factory automation applications is expected to have driven growth in the company’s industrial equipment sales in the fiscal third quarter. Strength across renewable energy applications is anticipated to have aided the energy business. Solid momentum among interventional procedures is likely to have driven its medical sales growth. These factors are expected to have benefited the industrial segment in the quarter under discussion.
In the communication segment, strengthening momentum across data and devices is anticipated to have acted as a tailwind in the quarter under review. The growing traction across high-speed solutions for cloud applications is likely to have been another key catalyst.
However, weakening momentum across the appliance business might have been a concern.
Increasing overall auto production, along with the growing production of hybrid and electric vehicles, is likely to have contributed well to the sales growth of the company’s transportation segment in the to-be-reported quarter. Solid content growth is expected to have driven commercial transportation sales growth in the quarter under review.
However, sluggish demand for sensors is likely to have been a headwind for the transportation segment. Supply-chain disruptions induced by the ongoing pandemic are expected to be reflected in the to-be-reported quarterly results.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for TE Connectivity this time around. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
TE Connectivity has an Earnings ESP of 0.00% and a Zacks Rank #3.
Stocks to Consider
Here are some stocks that you may consider, as our model shows that they have the right combination of elements to beat on earnings this season.
MSCI (MSCI - Free Report) has an Earnings ESP of +0.43% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
MSCI is scheduled to release fourth-quarter 2022 results on Jan 31. The Zacks Consensus Estimate for MSCI’s earnings is pegged at $2.71 per share, suggesting an increase of 7.97% from the prior-year quarter’s reported figure.
Endava (DAVA - Free Report) has an Earnings ESP of +1.97% and a Zacks Rank #3 at present.
Endava is set to report second-quarter fiscal 2023 results on Feb 15. The Zacks Consensus Estimate for DAVA’s earnings is pegged at 68 cents per share, suggesting an increase of 7.94% from the prior-year fiscal period’s reported figure.
Analog Devices (ADI - Free Report) has an Earnings ESP of +2.99% and a Zacks Rank #3 at present.
Analog Devices is scheduled to release first-quarter fiscal 2023 results on Feb 15. The Zacks Consensus Estimate for ADI’s earnings is pegged at $2.59 per share, suggesting an increase of 33.5% from the prior-year fiscal quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.