TE Connectivity Beats Q2 Earnings Estimates, Sees Growth in Orders Across All Segments

Author: Anusuya Lahiri | April 24, 2024 11:40am

TE Connectivity Ltd (NYSE:TEL) reported a fiscal second-quarter 2024 net sales of $3.97 billion, down by 5% year-on-year, beating the consensus of $3.96 billion.

The net sales declined by 3% organically.
Net sales grew by 4% Q/Q and 3% organically Q/Q.
The adjusted EPS of $1.86 beat the consensus of $1.83.
Orders were $4 billion, up 6% Q/Q, with sequential growth in all segments.
Revenue from Transportation Solutions declined by 4% Y/Y to $2.38 billion, Industrial Solutions decreased by 4% Y/Y to $1.14 billion, and Communications Solutions declined by 9.5% Y/Y to $440 million.

Margin: The adjusted operating margin improved by 250 bps to 18.5%.

TE Connectivity generated $1.1 billion in free cash flow and held $1.18 billion in cash and equivalents as of March 29, 2024.

TE Connectivity CEO Terrence Curtin believes so-called “mega trends” (i.e., hybrid and electric vehicles, renewable energy and artificial intelligence) will be key to “long-term profitable growth.”

Outlook: TEL expects third-quarter net sales of $4.0 billion, vs. the consensus of $4.11 billion, and adjusted EPS of $1.85, vs the consensus of $1.92.

TE Connectivity stock gained 12% in the last 12 months. Investors can gain exposure to the stock via EA Series Trust Strive U.S. Semiconductor ETF (NYSE:SHOC) and SmartETFs Smart Transportation & Technology ETF (NYSE:MOTO).

Price Action: TEL shares are trading lower by 0.85% at $142.00 premarket on the last check Wednesday.

Now Read: US Economy Expected To Grow 2.5% In Q1 – Not ‘A Hard Landing And Hardly A Soft One’

Posted In: MOTO SHOC TEL