A month has gone by since the last earnings report for TE Connectivity (TEL) . Shares have lost about 0.8% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is TE Connectivity due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts. TEL Q1 Earnings Surpass Estimates, Sales In ...

Core Viewpoint - TE Connectivity plc has entered into a definitive agreement to acquire Richards Manufacturing Co. for approximately $2.3 billion, aiming to enhance its position in the North American electrical utilities market and capitalize on growth trends in underground electrical networks [1][5][6] Company Overview - TE Connectivity is a global leader in connectors and sensors, focusing on creating a safer, sustainable, and connected future through its broad range of connectivity and sensor solutions [8][9] - Richards Manufacturing Co. is recognized as a best-in-class provider of utility grid products, specializing in underground distribution equipment and has experienced double-digit revenue growth in recent years [2][10] Strategic Rationale - The acquisition aligns with TE's strategy to invest in long-term growth trends, particularly in the energy sector, and aims to enhance grid reliability and support the increasing energy demand in North America [3][4] - TE Connectivity has been strategically investing in its Energy business to drive growth, focusing on utility-scale renewables and innovative products for the evolving energy grid [3][4] Financial Implications - The all-cash transaction is valued at approximately $2.3 billion and will be financed through cash and additional debt [5] - TE expects the acquisition to contribute annual sales of approximately $400 million with EBITDA margins in the mid-30 percent range, and anticipates a $0.10 accretion to its adjusted EPS in the first full year post-acquisition [6] Management and Integration - The management team of Richards Manufacturing will continue to lead the business after the acquisition, ensuring continuity and leveraging their expertise in the utilities market [2][4] - The transaction is subject to regulatory approvals and is expected to close in TE's fiscal third quarter, ending June 2025 [7]

Core Insights - Telenor Group reported solid results in Q4 2024, with stronger cash flow than previously indicated, and proposed a dividend of NOK 9.60 per share for 2024 [1][7] Financial Performance - Organic service revenues grew by 1.1% in Q4 2024, while organic EBITDA increased by 2.0%, with EBITDA before other items reaching NOK 8.5 billion [1] - Free cash flow before M&A for Q4 was NOK 3.1 billion, totaling NOK 11.4 billion for the entire year, exceeding the annual outlook [6] - Total free cash flow, including M&A income of NOK 1.9 billion, amounted to NOK 13.3 billion [6] Regional Performance - In the Nordics, Telenor achieved 2.3% organic growth in service revenues and 6.0% organic EBITDA growth due to efficiency initiatives [3] - Nordic service revenues grew by 4.6% for the full year, with total service revenues reaching NOK 44.7 billion [9] - Bangladesh faced slow economic recovery post-unrest, but Telenor's team demonstrated resilience [5] Strategic Direction - The company aims for a free cash flow of around NOK 13 billion for the current year, before M&A and potential items [7] - Telenor's strategy focuses on evolving as a customer-centric and technology-driven company while maintaining a strong dividend policy [8] Digital Crime Prevention - Telenor successfully prevented over 2.2 billion digital crime attempts against Norwegian customers throughout 2024 [10]

Core Insights - TE Connectivity has been recognized on Fortune's World's Most Admired Companies list for the eighth consecutive year, highlighting its strong reputation in the global business community [1][2] - The recognition reflects TE Connectivity's commitment to innovation and its role as a trusted partner to customers, as emphasized by CEO Terrence Curtin [1] - The evaluation of the companies on the list involved analyzing 650 organizations and surveying over 3,300 executives based on nine attributes, including financial stability, innovation, leadership, and corporate responsibility [1][2] Company Overview - TE Connectivity is a global industrial technology leader focused on creating a safer, sustainable, productive, and connected future through its connectivity and sensor solutions [3] - The company employs over 85,000 individuals, including 9,000 engineers, and operates in approximately 130 countries, ensuring that "EVERY CONNECTION COUNTS" [3]

Core Viewpoint - TE Connectivity plc has announced the pricing of €750 million senior notes offering with a 3.250% interest rate due in 2033, aimed at general corporate purposes including debt repayment [1][2][3] Group 1: Offering Details - The offering consists of €750 million aggregate principal amount of senior notes priced at 99.136% with a stated interest rate of 3.250% per year, payable annually [2] - The offering is expected to close on January 31, 2025, and is managed by BofA Securities Europe SA, Citigroup Global Markets Limited, and J.P. Morgan Securities plc [3] Group 2: Use of Proceeds - The net proceeds from the offering will be utilized for general corporate purposes, which may include the repayment of outstanding debt [3] Group 3: Company Overview - TE Connectivity plc is a global industrial technology leader with over 85,000 employees, including 9,000 engineers, operating in approximately 130 countries [6] - The company focuses on connectivity and sensor solutions that support various sectors including transportation, renewable energy, and medical technology [6]

Core Insights - TE Connectivity's (TEL) international operations are crucial for understanding its financial resilience and growth potential, especially given its extensive global presence [1][2] Revenue Performance - For the quarter ending December 2024, TEL reported total revenue of $3.84 billion, a slight increase of 0.1% year over year [4] - Asia-Pacific contributed $1.6 billion, accounting for 41.79% of total revenue, surpassing the consensus estimate of $1.32 billion by 21.27% [5] - EMEA generated $1.23 billion, representing 32.04% of total revenue, but fell short of expectations by 15.38%, as analysts had anticipated $1.45 billion [6] Future Projections - Analysts project TEL's total revenue for the current fiscal quarter to be $3.95 billion, reflecting a decline of 0.4% from the previous year [7] - For the full year, total revenue is expected to reach $16.19 billion, an increase of 2.2% from the prior year, with Asia-Pacific and EMEA projected to contribute $5.55 billion and $6.1 billion, respectively [8] Strategic Considerations - TEL's reliance on international markets presents both opportunities and challenges, necessitating close monitoring of international revenue trends to forecast the company's future direction [9][10]

Financial Performance - Net sales in Q1 fiscal 2025 were $3.836 billion, consistent with Q1 fiscal 2024, with a 6.3% decline in the Transportation Solutions segment and a 10.8% increase in the Industrial Solutions segment[109]. - The company expects net sales of approximately $3.95 billion in Q2 fiscal 2025, down from $3.97 billion in Q2 fiscal 2024, with a projected diluted loss per share of approximately $0.05[110]. - Gross margin increased by $36 million to $1.36 billion in Q1 fiscal 2025, representing 35.5% of net sales, compared to 34.6% in Q1 fiscal 2024[120]. - Operating income for Q1 fiscal 2025 was $690 million, with an operating margin of 18.0%, down from 18.2% in Q1 fiscal 2024[126]. - Transportation Solutions segment net sales decreased by $150 million, or 6.3%, in Q1 fiscal 2025 compared to Q1 fiscal 2024, primarily due to organic net sales declines of 5.2%[130]. - Operating income in the Transportation Solutions segment decreased by $41 million to $446 million in Q1 fiscal 2025, with an operating margin of 19.9%[131]. - Industrial Solutions segment net sales increased by $155 million, or 10.8%, in Q1 fiscal 2025 compared to Q1 fiscal 2024, driven by organic net sales growth of 8.6%[134]. - Operating income in the Industrial Solutions segment increased by $33 million to $244 million in Q1 fiscal 2025, with an operating margin of 15.3%[136]. - Income from continuing operations was $311 million for the quarter ending December 27, 2024, a significant improvement from a loss of $271 million in the same quarter of the previous year[153]. Cash Flow and Capital Expenditures - Net cash provided by operating activities was $878 million in Q1 fiscal 2025[109]. - Net cash provided by operating activities increased by $159 million to $878 million in Q1 fiscal 2025 from $719 million in Q1 fiscal 2024[140]. - Capital expenditures were $205 million in Q1 fiscal 2025, with expectations for capital spending to be approximately 5% of net sales[141]. Restructuring and Costs - The company incurred net restructuring charges of $43 million in Q1 fiscal 2025, with expected annualized cost savings of approximately $35 million by the end of fiscal 2026[123]. - The company anticipates total restructuring charges of approximately $100 million for fiscal 2025, with total cash spend expected to be around $200 million[123]. Shareholder Returns - Payments of ordinary/common share dividends to shareholders were $189 million in Q1 fiscal 2025, up from $183 million in Q1 fiscal 2024[148]. - The board of directors authorized an increase of $2.5 billion in the share repurchase program, with $2.4 billion remaining available as of December 27, 2024[149]. - Approximately 2 million ordinary shares were repurchased for $310 million, and 3 million common shares for $420 million during the first quarters of fiscal 2025 and 2024, respectively[149]. Debt and Assets - Total debt was $4,205 million as of December 27, 2024, compared to $4,203 million at the end of the previous quarter[144]. - Total current assets increased to $1,320 million as of December 27, 2024, compared to $1,164 million on September 27, 2024[152]. - Total noncurrent liabilities decreased to $7,431 million as of December 27, 2024, down from $10,738 million on September 27, 2024[152]. - The company has $185 million in outstanding letters of credit, including $22 million related to the divestiture of the Subsea Communications business[156]. Market Conditions and Compliance - Approximately 60% of net sales were invoiced in currencies other than the U.S. dollar in Q1 fiscal 2025, impacting reported results due to foreign currency exchange rates[117]. - The average price of copper increased to $4.09 per pound in Q1 fiscal 2025 from $3.87 in Q1 fiscal 2024, while gold rose to $2,305 per troy ounce from $1,943[121]. - Organic net sales growth is presented as a key performance measure, excluding the impact of foreign currency exchange rates and acquisitions[165]. - The company is cooperating with the U.S. State Department's Directorate of Defense Trade Controls regarding past compliance with trade controls[160]. - Forward-looking statements indicate potential growth opportunities and risks related to global economic conditions and competition[169]. - The company does not expect legal proceedings to have a material adverse effect on its financial position or cash flows[159]. Taxation - The effective tax rate for Q1 fiscal 2025 was 25.2%, compared to (158.1)% in Q1 fiscal 2024, reflecting a significant change in income tax expense[127].

TE Connectivity’s (TEL) first-quarter fiscal 2025 Transportation Solutions sales of $2.24 billion lagged the Zacks Consensus Estimate by 4.02%. The segment’s sales declined 6.3% year over year on a reported basis and dropped 5% organically.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.In the reported quarter, TEL’s adjusted earnings of $1.95 per share beat the Zacks Consensus Estimate by 3.17%. The earnings figure increased 3.17% year over year.Net sales totaled $3.84 billion, missi ...

Group 1 - Telenor Group will announce its results for the fourth quarter of 2024 on February 6, 2024, at 0900 CET / 0800 UKT [1] - The results presentation will be available via webcast only, and participants can view it without joining the live Q&A [1] - A separate press meeting for media will take place at 10.30 CET at Telenor HUB, and the session will be conducted in Norwegian [2]

Core Viewpoint - TE Connectivity (TEL) reported a mixed performance in its first-quarter fiscal 2025 results, with adjusted earnings per share (EPS) beating estimates but net sales missing expectations due to currency exchange challenges [1][2]. Financial Performance - Adjusted EPS for the first quarter was $1.95, a 6% increase year-over-year, surpassing the Zacks Consensus Estimate by 3.17% [1] - Net sales reached $3.84 billion, which was unchanged year-over-year but fell short of the consensus estimate by 1.92% [2] - The company anticipates a slight decline in net sales for the second quarter, projecting $3.95 billion, a decrease of 0.5% year-over-year, while adjusted EPS is expected to grow by 5% to $1.96 [3] Segment Performance - The Transportation Solutions segment generated $2.24 billion, accounting for 58.5% of total net sales, but saw a decline of 6.3% year-over-year [4] - Automotive sales within this segment decreased by 4% year-over-year [4] - The Industrial Solutions segment reported revenues of $1.59 billion, representing 41.5% of net sales, with an 11% year-over-year increase [5] - Within the Industrial Solutions segment, Digital Data Networks and Aerospace, Defense and Marine saw significant growth of 48% and 15% respectively, while Medical experienced a decline of 25% [6] Operating Metrics - GAAP gross margin improved by 90 basis points year-over-year to 35.5% [7] - Selling, general and administrative expenses increased to 11.1% of revenues, up 10 basis points year-over-year [7] - Adjusted operating margin expanded by 30 basis points to 19.4% [7] Balance Sheet and Cash Flow - As of December 27, 2024, cash and cash equivalents were $1.25 billion, down from $1.32 billion at the end of the previous quarter [8] - Long-term debt slightly decreased to $3.29 billion [8] - Cash generated from operations was $0.9 billion, down from $1 billion in the previous quarter, and free cash flow was $674 million, down from $833 million [8]