• TE Connectivity 2Q net sales were $3.97 billion, marking a -4.6% y/y change, matching the estimated $3.96 billion.
• Transportation Solutions posted net sales of $2.38 billion, a -4% y/y decrease, slightly missing the estimated $2.41 billion.
• Communications Solutions posted a -9.5% y/y decrease in their net sales with $440 million net sales, slightly above the estimated $438 million.
• The company’s adjusted operating income experienced a boost of +11% y/y to reach $735 million, surpassing the estimated $725.9 million.
• Adjusted operating income for Transportation Solutions increased by +18% y/y, reaching $486 million, higher than the predicted $481.1 million.
• Industrial Solutions showed a slight decrease of -0.6% y/y in their adjusted operating income with $173 million, which is still higher than the estimated $168.5 million.
• Communications Solutions adjusted operating income shrunk by -3.8% y/y to $76 million, below the estimate of $80.1 million.
• Industrial Solutions net sales were $1.14 billion, a decrease of -4% y/y, while slightly surpassing the estimate of $1.12 billion.
• The quarter’s performance is expected to pave the way for strong earnings growth and margin expansion in both the third quarter and the full fiscal year.
• The EPS delivered above the company’s guidance for the quarter thanks to the double-digit earnings growth driven by margin expansion in all three segments, even while navigating a dynamic global market environment.
• Rating reveals a balanced investment sentiment with 10 buys, 10 holds, and 0 sells.
A look at Te Connectivity Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Te Connectivity shows a promising long-term outlook. With a high Growth score of 5, the company is positioned well for future expansion and development. This is further supported by a Momentum score of 4, indicating strong positive price trends. Additionally, Te Connectivity demonstrates solid Resilience with a score of 3, suggesting the company’s ability to withstand market challenges. Although the company scores moderately on Value and Dividend with scores of 3 each, the overall outlook remains positive for Te Connectivity.
TE Connectivity Limited offers a diverse range of engineered electronic components and solutions, catering to various industries such as automotive, aerospace, telecommunications, and consumer electronics. With a focus on innovation and network solutions, the company is well-positioned to capitalize on future growth opportunities. The combination of its strong growth potential, momentum, and resilience bodes well for Te Connectivity‘s long-term prospects in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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