TE Connectivity Earnings Surpass Estimates in Q1, Increase Y/Y

TE Connectivity TEL has reported first-quarter fiscal 2025 adjusted earnings of $1.95 per share, which increased 6% from the year-ago quarter and beat the Zacks Consensus Estimate by 3.17%.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Net sales totaled $3.84 billion, missing the consensus estimate by 1.92%. The metric was unchanged year over year. Sales were unfavorably impacted by heightened currency exchange headwinds in the reported quarter.TEL has offered conservative guidance for the second quarter of fiscal 2025, citing foreign exchange pressures affecting sales, and a combination of forex and tax headwinds impacting earnings.TE Connectivity Ltd. Price, Consensus and EPS Surprise  TE Connectivity Ltd. price-consensus-eps-surprise-chart | TE Connectivity Ltd. QuoteTE Connectivity expects fiscal second-quarter net sales to decrease 0.5% year over year to $3.95 billion. Adjusted earnings are projected to be $1.96 per share, indicating year-over-year growth of 5%.The company also expects sequential organic growth for both Transportation and Industrial Solutions segments.TEL’s Top-Line DetailsThe Transportation Solutions segment generated revenues of $2.24 billion, contributing 58.5% to net sales. This figure declined 6.3% year over year on a reported basis and dropped 5% organically.The company witnessed a 4% year-over-year dip in automotive sales. Organically, auto sales edge down 3%.Sensor sales declined 13% year over year, while commercial transportation sales dropped 12%. The decrease was primarily driven by weakness in broader industrial end markets across Europe and North America.The Industrial Solutions segment generated revenues of $1.59 billion, making up 41.5% of net sales. This represented an 11% year-over-year increase on a reported basis and 9% growth organically.The Industrial Solutions segment includes Digital Data Networks; Automation & Connected Living; Aerospace, Defense and Marine; and Energy, which saw year-over-year growth of 48%, 3%, 15% and 5%, respectively. However, Medical, which also falls under the segment, experienced a decline of 25%.TEL’s Operating DetailsIn first-quarter fiscal 2025, the GAAP gross margin expanded 90 basis points (bps) year over year to 35.5%.Selling, general and administrative expenses, as a percentage of revenues, increased 10 bps year over year to 11.1%. Research, development and engineering expenses, as a percentage of revenues, expanded 40 bps to 4.9%.The adjusted operating margin expanded 30 bps year over year to 19.4% in the reported quarter.TEL’s Balance Sheet & Cash FlowAs of Dec. 27, 2024, cash and cash equivalents were $1.25 billion, down from $1.32 billion as of Sept. 27, 2024.The long-term debt was $3.29 billion as of Sept. 27, 2024, compared with $3.33 billion as of Sept. 27, 2024.TE Connectivity generated $0.9 billion in cash from operations in the reported quarter, down from the previous quarter’s $1 billion.TEL generated a free cash flow of $674 million in the fiscal first quarter, down from $833 million in the previous quarter.Zacks Rank & Stocks to ConsiderCurrently, TE Connectivity has a Zacks Rank #4 (Sell).Badger Meter BMI, OSI Systems OSIS and ServiceNow NOW are some better-ranked stocks that investors can consider in the broader sector, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Badger Meter shares have risen 15.7% over the past year. BMI is set to report its fourth-quarter 2024 results on Jan. 31.OSI Systems shares have rallied 33.5% over the past year. OSIS is set to report its second-quarter fiscal 2025 results on Jan. 23.ServiceNow shares have gained 48.5% over the past year. NOW is set to report its fourth-quarter 2024 results on Jan. 29.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Badger Meter, Inc. (BMI): Free Stock Analysis Report TE Connectivity Ltd. (TEL): Free Stock Analysis Report OSI Systems, Inc. (OSIS): Free Stock Analysis Report ServiceNow, Inc. (NOW): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks