TE Connectivity Beats Q2 Earnings Estimates, Sees Growth in Orders Across All Segments
Portfolio Pulse from Anusuya Lahiri
TE Connectivity Ltd (NYSE:TEL) reported fiscal Q2 2024 net sales of $3.97 billion, a 5% decrease Y/Y but beating consensus estimates. Adjusted EPS was $1.86, surpassing the consensus of $1.83. Orders increased by 6% Q/Q across all segments. The company saw a decline in revenue across its Transportation, Industrial, and Communications Solutions segments. The adjusted operating margin improved to 18.5%, and the company generated $1.1 billion in free cash flow. CEO Terrence Curtin highlighted the importance of mega trends for future growth. TEL expects Q3 net sales of $4.0 billion and adjusted EPS of $1.85, below consensus estimates. TEL shares dropped 0.85% in premarket trading. TEL is also accessible through ETFs SHOC and MOTO.
April 24, 2024 | 3:40 pm
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POSITIVE IMPACT
SmartETFs Smart Transportation & Technology ETF (MOTO) provides investor access to TE Connectivity, which has shown promising Q2 2024 earnings and growth in mega trends.
MOTO, by including TEL in its portfolio, could attract positive investor attention due to TEL's earnings performance and strategic focus on growth areas, potentially boosting MOTO's appeal.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Investors can gain exposure to TE Connectivity, which reported strong Q2 2024 earnings, through the EA Series Trust Strive U.S. Semiconductor ETF (SHOC).
As an ETF that includes TEL, SHOC may see positive sentiment from investors encouraged by TEL's earnings beat and growth prospects, potentially leading to increased interest in SHOC.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
TE Connectivity reported a fiscal Q2 2024 net sales decrease of 5% Y/Y but beat consensus estimates. Adjusted EPS exceeded expectations. Despite a revenue decline in key segments, the company sees growth potential in mega trends.
Despite beating earnings estimates and showing potential for future growth, the premarket stock price decline indicates mixed investor reactions, likely due to the lower-than-expected Q3 forecasts.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100