Financial Data and Key Metrics Changes - TE Connectivity reported its first quarter results for fiscal year 2025, with specific financial metrics to be discussed in detail during the call [3][4] Business Line Data and Key Metrics Changes - Detailed performance metrics for each business line will be provided in the subsequent sections of the call [3][4] Market Data and Key Metrics Changes - Insights into market performance and metrics will be shared as part of the overall financial discussion [3][4] Company Strategy and Development Direction - The company will outline its strategic initiatives and competitive positioning within the industry during the call [3][4] Management Comments on Operating Environment and Future Outlook - Management will provide commentary on the current operating environment and future outlook for the company [3][4] Other Important Information - The call will include forward-looking statements and the use of non-GAAP measures, with relevant details available in the press release and slide presentation [4] Q&A Session Summary Question: What are the expectations for revenue growth in the upcoming quarters? - Management will address revenue growth expectations during the Q&A session, providing insights into market conditions and company performance [3][4]

Core Insights - TE Connectivity (TEL) reported revenue of $3.84 billion for the quarter ended December 2024, reflecting a year-over-year increase of 0.1% and an EPS of $1.95 compared to $1.84 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $3.91 billion, resulting in a surprise of -1.92%, while the EPS exceeded expectations by +3.17% against a consensus estimate of $1.89 [1] Financial Performance - Net sales in the Transportation Solutions segment were $2.24 billion, below the average estimate of $2.34 billion, marking a year-over-year decline of -5.5% [4] - In contrast, the Industrial Solutions segment reported net sales of $1.59 billion, surpassing the average estimate of $1.30 billion, with a significant year-over-year increase of +55.4% [4] - Adjusted Operating Income for Transportation Solutions was $478 million, slightly above the estimated $468.40 million, while Industrial Solutions reported $267 million, exceeding the average estimate of $199.89 million [4] Market Performance - Over the past month, TE Connectivity shares returned +1.9%, compared to a +2.1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Viewpoint - TE Connectivity (TEL) reported quarterly earnings of $1.95 per share, exceeding the Zacks Consensus Estimate of $1.89 per share, and showing an increase from $1.84 per share a year ago, indicating a 3.17% earnings surprise [1] Financial Performance - The company posted revenues of $3.84 billion for the quarter ended December 2024, which was 1.92% below the Zacks Consensus Estimate, and slightly up from $3.83 billion year-over-year [2] - Over the last four quarters, TE Connectivity has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Stock Performance - TE Connectivity shares have increased approximately 3.7% since the beginning of the year, outperforming the S&P 500's gain of 2.9% [3] Future Outlook - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $2 on revenues of $4.1 billion, and for the current fiscal year, it is $8.10 on revenues of $16.48 billion [7] Industry Context - The Zacks Industry Rank for Electronics - Miscellaneous Components is in the top 38% of over 250 Zacks industries, suggesting that the industry outlook can significantly impact stock performance [8]

January 22, 2025 EVERY CONNECTION COUNTS Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking Statements This presentation contains certain "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to risks, uncertainty and changes in circumstances, which may cause actual results, performance, financial condition or achievements to differ materially from a ...

Financial Performance - Net sales were $3.84 billion, flat year over year on an organic basis[5] - Adjusted EPS was $1.95, up 6% year over year[5] - Adjusted operating margin reached a quarterly record of 19.4%[5] - Cash from operating activities was $878 million, up 22% year over year[5] - Free cash flow was $674 million, up 18% year over year[5] - Net cash provided by operating activities increased from $719 million to $878 million, a 22.1% increase[25] - Free cash flow rose from $570 million to $674 million, an 18.2% increase[27] - Total net sales remained flat at $3,836 million, with a slight decline in operating margin from 18.2% to 18.0%[29] - Adjusted operating income increased from $731 million to $745 million, with adjusted operating margin rising from 19.1% to 19.4%[29] - Net income from continuing operations was $528 million, with diluted earnings per share of $1.75[32] - Adjusted income from continuing operations was $586 million, with adjusted diluted earnings per share of $1.95[32] - Effective tax rate decreased from 25.2% to 23.0% after adjustments[32] - Income from continuing operations for Q4 2023 was $1.84 per diluted share after adjustments[34] - Income from continuing operations for Q1 2024 was $1.86 per diluted share after adjustments[37] - Adjusted diluted earnings per share from continuing operations for Q1 2025 is forecasted at $1.96[42] Segment Performance - Orders reached $4.0 billion, up 6% year over year and 4% sequentially, driven by the Industrial segment[5] - Transportation Solutions net sales declined by 6.3% to $2,243 million, with operating margin decreasing from 20.4% to 19.9%[29] - Industrial Solutions net sales grew by 10.8% to $1,593 million, with operating margin increasing from 14.7% to 15.3%[29] - Transportation Solutions operating income for Q4 2023 was $487 million, adjusted to $504 million after restructuring and other charges[34] - Industrial Solutions operating income for Q4 2023 was $211 million, adjusted to $227 million after acquisition-related and restructuring charges[34] - Total operating income for Q4 2023 was $698 million, adjusted to $731 million, with an operating margin of 19.1%[34] - Transportation Solutions operating income for Q1 2024 was $477 million, adjusted to $496 million after restructuring charges[37] - Industrial Solutions operating income for Q1 2024 was $215 million, adjusted to $239 million after acquisition-related and restructuring charges[37] - Total operating income for Q1 2024 was $692 million, adjusted to $735 million, with an operating margin of 18.5%[37] Shareholder Returns and Acquisitions - The company returned approximately $500 million to shareholders and deployed $325 million for bolt-on acquisitions in the Industrial segment[5] Future Outlook - For Q2 FY25, the company expects net sales of approximately $3.95 billion and adjusted EPS of $1.96, up 5% year over year[7] - Net sales growth for Q1 2025 is projected to decline by 0.4%, with organic net sales growth expected at 1.3%[42] Organizational Changes - The company reorganized into two reportable segments: Transportation Solutions and Industrial Solutions[8] Sustainability and Recognition - The company was named to the Dow Jones Sustainability Index for the 13th consecutive year[5] Asset and Liability Changes - Total assets decreased from $22,854 million to $22,441 million, a decline of 1.8%[24]

EPS above guidance with record first quarter cash generationGALWAY, Ireland, Jan. 22, 2025 /PRNewswire/ -- TE Connectivity plc (NYSE: TEL) today reported results for the fiscal first quarter ended Dec. 27, 2024.First Quarter Highlights Net sales were $3.84 billion, flat year over year and as expected on an organic basis. Compared to guidance, sales were unfavorably impacted by increased currency exchange headwinds. Earnings per share (EPS) above guidance, with GAAP diluted EPS from continuing operation ...

Core Viewpoint - TE Connectivity (TEL) is expected to report its first-quarter fiscal 2025 earnings on January 22, with anticipated adjusted earnings of approximately $1.88 per share, reflecting a 2% year-over-year growth despite tax-related headwinds [1][2]. Earnings Estimates - The Zacks Consensus Estimate for TEL's earnings is $1.89 per share, indicating a 2.72% growth compared to the previous year [2]. - TEL has beaten the Zacks Consensus Estimate for earnings in three of the last four quarters, with an average surprise of 2.83% [3]. Sales Expectations - TEL expects first-quarter sales to be around $3.9 billion, suggesting a 2% year-over-year growth, while the consensus estimate is slightly higher at $3.91 billion, indicating a 2.09% growth [4]. - The Transportation segment sales are estimated at $2.337 billion, reflecting a 1.5% year-over-year decline, while Industrial Solutions sales are expected to grow by approximately 2% to $1.045 billion [7]. Growth Drivers - Increased demand for TEL's solutions in Artificial Intelligence (AI) applications is anticipated to drive top-line growth, particularly in Communications Solutions [5]. - The Industrial Solutions segment is expected to benefit from improving Commercial Aerospace and Defense markets, as well as strength in renewable applications [5]. - The Transportation segment's growth is supported by TEL's strong position in hybrid and electric vehicles, although there is ongoing weakness in Commercial Transportation and Sensors due to sluggish industrial application markets [6]. Stock Performance - Since the last earnings report on October 30, 2024, TEL's shares have declined by 4%, outperforming the Zacks Electronics Miscellaneous Components industry but underperforming the broader Zacks Computer & Technology sector [10]. - The near-term share price movement is expected to remain muted due to macroeconomic challenges in the Transportation Solutions segment, but long-term growth prospects are promising due to rising demand for AI solutions [11].

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Core Viewpoint - TE Connectivity (TEL) is expected to report quarterly earnings of $1.89 per share, reflecting a year-over-year increase of 2.7%, with revenues projected at $3.9 billion, up 1.8% from the previous year [1]. Earnings Projections - The consensus EPS estimate has been adjusted downward by 0.4% over the past 30 days, indicating a reassessment by analysts [1][2]. - Revisions to earnings projections are crucial for predicting investor behavior and stock performance [2]. Key Metrics Projections - The consensus estimate for 'Net sales- Transportation Solutions' is $2.32 billion, indicating a year-over-year decrease of 2.1% [4]. - 'Net sales- Industrial Solutions' is projected at $1.04 billion, reflecting a year-over-year increase of 1.9% [4]. - 'Net sales- Communications Solutions' is expected to reach $541.46 million, showing a significant increase of 25.1% from the prior year [4]. Segment-Specific Sales Estimates - 'Net sales- Industrial Solutions- Energy' is estimated at $215.71 million, up 5.2% year-over-year [5]. - 'Net sales- Industrial Solutions- Medical' is projected at $209.88 million, indicating a 4.9% increase [5]. - 'Net sales- Transportation Solutions- Automotive' is expected to be $1.76 billion, down 1.1% from the previous year [5]. Additional Sales Insights - 'Net sales- Transportation Solutions- Commercial transportation' is estimated at $337.70 million, reflecting a decrease of 5.1% year-over-year [6]. - 'Net sales- Transportation Solutions- Sensors' is projected at $228.78 million, also down 5.1% [6]. - 'Net sales- Industrial Solutions- Aerospace, defense, and marine' is expected to reach $321.47 million, up 10.9% year-over-year [7]. - 'Net sales- Communications Solutions- Appliances' is projected at $162.16 million, indicating a 5.3% increase [7]. - 'Net sales- Communications Solutions- Data and devices' is expected to be $372.14 million, reflecting a significant increase of 33.4% year-over-year [8]. - 'Net sales- Industrial Solutions- Industrial equipment' is projected at $297.30 million, down 9.9% from the prior year [8]. Stock Performance - TE Connectivity shares have decreased by 0.9% over the past month, compared to a 3.3% decline in the Zacks S&P 500 composite [8].

Executive Appointments - Telenor Group has appointed Jon Omund Revhaug as Head of Telenor Asia and Sigvart Voss Eriksen as Head of Telenor Nordics, with both executives starting no later than the end of April [1] - Both executives bring extensive telecommunications expertise and customer-centric leadership to Telenor's most significant markets [1] - Jon Omund Revhaug is a Telenor veteran with 24 years of experience, including over 15 years in Asia, and is currently acting Head of Telenor Nordics [4][6] - Sigvart Voss Eriksen currently serves as CEO of Omny, an industrial cybersecurity company, and has a strong background in customer-facing transformations and cybersecurity leadership [2][3] Leadership Expertise - Jon Omund Revhaug has a proven track record in leading Telenor's operations across Nordic and Asian markets, including roles as CEO of Telenor Myanmar and leading the merger integration between dtac and True in Thailand [6][7] - Sigvart Voss Eriksen has demonstrated leadership in cybersecurity and scalable technologies, which are critical for Telenor Nordics' transformation and operational excellence initiatives [2][3] - Both executives have extensive multi-market experience within Telenor and have successfully built high-performing teams and winning cultures [1] Strategic Focus - Jon Omund Revhaug aims to execute Telenor's strategy of scaling and building leading telco operators in Thailand, Malaysia, and Bangladesh, focusing on creating value for stakeholders [5] - Sigvart Voss Eriksen plans to drive innovation, simplification, and efficiency in Telenor Nordics, leveraging his expertise in secure and scalable digital infrastructure [3] - Telenor's leadership emphasizes the importance of delivering secure, reliable services and driving value through continued transformation in both Nordic and Asian markets [3][5] Organizational Changes - Thomas Midteide will now report directly to CEO Benedicte Schilbred Fasmer as Chief Communications Officer, reflecting a new addition to the CEO's direct reports [7]