PROJECT UPDATE: @Telcoin 2025 Deep Dive: Telecom Meets DeFi with Digital Bank & eUSD! $TEL https://t.co/UoDDE4NhZb ...

Core Viewpoint - Tokyo Electron (TEL) has revised its financial forecasts downward for the fiscal year 2025 due to semiconductor manufacturers adjusting their equipment investment plans, leading to a significant decline in expected revenue and profit compared to market expectations [3][4]. Financial Performance - TEL's consolidated revenue target for the fiscal year 2025 has been lowered from 2.6 trillion yen (an increase of 6.9%) to 2.35 trillion yen (a decrease of 3.4%) [3]. - The consolidated operating profit target has been revised down from 727 billion yen (an increase of 4.3%) to 570 billion yen (a decrease of 18.3%) [3]. - The consolidated net profit target has also been reduced from 566 billion yen (an increase of 4.0%) to 444 billion yen (a decrease of 18.4%) [3]. - For the last quarter (April-June 2025), TEL reported a consolidated revenue of 549.5 billion yen, a decline of 1.0% year-on-year, and an operating profit of 144.6 billion yen, down 12.7% [4]. Market Dynamics - TEL's revenue from the Japanese market surged by 67% to 64.3 billion yen, while revenue from North America plummeted by 26% to 43.4 billion yen [5]. - The revenue from the Chinese market decreased by 23% to 212.1 billion yen, representing 38.6% of total revenue, down from 49.9% in the previous year [5]. Competitive Landscape - Despite concerns over competition from Chinese manufacturers, TEL's CEO expressed confidence in maintaining a technological lead over Chinese competitors due to close collaboration with foundry chip manufacturers [7]. - TEL plans to invest 1.5 trillion yen (approximately 10.5 billion USD) in R&D over the next five years and aims to hire 10,000 engineers [8]. Future Outlook - The company aims to achieve an operating profit of at least 1 trillion yen and sales exceeding 3 trillion yen by 2027 [10]. - TEL's CEO indicated that the company is not significantly affected by potential U.S. tariffs, as only 8% of total revenue is at risk, and transactions are conducted in yen, mitigating currency fluctuation risks [10].

Core Insights - Wall Street is experiencing a strong rally, driven by solid corporate earnings, resilient economic data, the AI boom, and retail investor enthusiasm, despite concerns over trade policy and Federal Reserve actions [1] Dividend Growth Strategy - Dividend investing is gaining traction as it provides consistent income, especially in uncertain markets, with a focus on stocks that have a strong history of year-over-year dividend growth leading to higher returns [2][4] - Stocks with a solid dividend growth history are typically mature companies, offering downside protection and acting as a hedge against market volatility [4][5] - Selected dividend growth stocks include Boyd Gaming Corporation, TE Connectivity, UGI Corporation, NetEase Inc., and Garmin Ltd., which show strong earnings revisions and growth potential [3][9] Stock Selection Criteria - Stocks selected for dividend growth should have a 5-Year Historical Dividend Growth greater than zero, indicating a solid dividend growth history [6] - Additional criteria include 5-Year Historical Sales Growth and EPS Growth greater than zero, ensuring a strong record of revenue and earnings growth [7] - Valuation metrics such as Price/Cash Flow less than the industry average and a 52-Week Price Change greater than the S&P 500 are also important for stock selection [8] Company Profiles - **Boyd Gaming Corporation (BYD)**: A multi-jurisdictional gaming company with a positive earnings estimate revision of $0.31 and an earnings surprise of 9.12% over the past four quarters, holding a Zacks Rank 1 and a Growth Score of A [10][11] - **TE Connectivity (TEL)**: A global technology company with a solid earnings estimate revision of $0.22 and an estimated growth of 12.30%, also holding a Zacks Rank 1 and a Growth Score of B [11][12] - **UGI Corporation (UGI)**: A holding company for energy products with an estimated earnings growth rate of 2.29% and an average earnings surprise of 75.67%, holding a Zacks Rank 2 and a Growth Score of B [13] - **NetEase Inc. (NTES)**: An Internet technology company with a positive earnings estimate revision and an estimated earnings growth rate of 20.14%, holding a Zacks Rank 2 and a Growth Score of A [14] - **Garmin Ltd. (GRMN)**: An OEM of navigation equipment with a positive earnings estimate revision of $0.03 and an estimated earnings growth rate of 7.85%, holding a Zacks Rank 2 and a Growth Score of B [15]

TE Connectivity (TEL) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years. Sin ...

```markdown [Part I. Financial Information](index=4&type=section&id=Part%20I.%20Financial%20Information) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) TE Connectivity reported Q3 2025 net sales of **$4,534 million**, up 13.9%, and nine-month net sales of **$12,513 million**, up 6.2%, with net income significantly impacted by a large income tax expense Condensed Consolidated Statements of Operations (Q3 & YTD FY2025 vs FY2024) | Metric | Q3 2025 (in millions) | Q3 2024 (in millions) | YoY Change | YTD 2025 (in millions) | YTD 2024 (in millions) | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $4,534 | $3,979 | +13.9% | $12,513 | $11,777 | +6.2% | | **Gross Margin** | $1,600 | $1,386 | +15.4% | $4,419 | $4,073 | +8.5% | | **Operating Income** | $857 | $755 | +13.5% | $2,295 | $2,145 | +7.0% | | **Net Income** | $638 | $573 | +11.3% | $1,179 | $2,917 | -59.6% | | **Diluted EPS** | $2.14 | $1.86 | +15.1% | $3.93 | $9.41 | -58.2% | Condensed Consolidated Balance Sheets Highlights | Metric | June 27, 2025 (in millions) | September 27, 2024 (in millions) | | :--- | :--- | :--- | | **Total Current Assets** | $7,605 | $7,631 | | **Goodwill** | $7,251 | $5,801 | | **Total Assets** | $24,866 | $22,854 | | **Total Current Liabilities** | $4,988 | $4,746 | | **Long-Term Debt** | $4,846 | $3,332 | | **Total Liabilities** | $12,342 | $10,368 | | **Total Shareholders' Equity** | $12,381 | $12,355 | Condensed Consolidated Statements of Cash Flows (Nine Months Ended) | Metric | June 27, 2025 (in millions) | June 28, 2024 (in millions) | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $2,718 | $2,435 | | **Net cash used in investing activities** | ($3,298) | ($744) | | **Net cash used in financing activities** | ($63) | ($1,875) | | **Net decrease in cash** | ($647) | ($192) | [Note 1. Basis of Presentation and Accounting Pronouncement](index=10&type=section&id=Note%201.%20Basis%20of%20Presentation%20and%20Accounting%20Pronouncement) The company completed its reincorporation from Switzerland to Ireland and reorganized its segments into Transportation Solutions and Industrial Solutions for fiscal 2025 - Completed the change of incorporation from Switzerland to Ireland, with TE Connectivity plc becoming the surviving entity[29](index=29&type=chunk) - Reorganized into two new segments for fiscal 2025: Transportation Solutions and Industrial Solutions, realigning several businesses to fit the new structure[30](index=30&type=chunk) [Note 2. Restructuring and Other Charges, Net](index=11&type=section&id=Note%202.%20Restructuring%20and%20Other%20Charges,%20Net) For the nine months ended June 27, 2025, net restructuring and other charges increased to **$109 million**, driven by a new fiscal 2025 program for footprint consolidation and cost structure improvements Restructuring and Other Charges, Net (Nine Months Ended) | Charge Type | June 27, 2025 (in millions) | June 28, 2024 (in millions) | | :--- | :--- | :--- | | Restructuring charges, net | $97 | $57 | | Costs related to change in place of incorporation | $11 | $11 | | Other charges, net | $2 | $9 | | **Total** | **$109** | **$67** | - Initiated a new restructuring program in fiscal 2025, recording **$80 million** in charges during the first nine months related to footprint consolidation and cost structure improvements[38](index=38&type=chunk) [Note 3. Acquisitions](index=13&type=section&id=Note%203.%20Acquisitions) On April 1, 2025, the company acquired Richards Manufacturing Co. for approximately **$2.3 billion** in cash, contributing **$73 million** in net sales and an **$8 million** operating loss in Q3 2025 - Acquired 100% of Richards Manufacturing Co. on April 1, 2025, for approximately **$2.3 billion** in cash, net of cash acquired, with the business reported within the Industrial Solutions segment[46](index=46&type=chunk) Preliminary Purchase Price Allocation for Richards Manufacturing | Asset/Liability | Amount (in millions) | | :--- | :--- | | Goodwill | $1,142 | | Intangible Assets | $1,120 | | Net Assets Acquired | $2,348 | - In Q3 2025, Richards Manufacturing contributed **$73 million** in net sales and an operating loss of **$8 million**, which included **$21 million** in acquisition costs[54](index=54&type=chunk) [Note 7. Debt](index=17&type=section&id=Note%207.%20Debt) In Q3 2025, the company issued approximately **$1.4 billion** in new senior notes to fund acquisitions and general corporate purposes, increasing total debt fair value to approximately **$5.7 billion** - In Q3 2025, issued new senior notes totaling approximately **$1.4 billion** (€500M, $450M, and $450M) to fund the Richards Manufacturing acquisition and for general corporate purposes[71](index=71&type=chunk) - Repaid **€550 million** of 0.00% senior notes at maturity in February 2025[74](index=74&type=chunk) - The fair value of total debt increased from **$4.2 billion** at September 27, 2024, to approximately **$5.7 billion** at June 27, 2025[76](index=76&type=chunk) [Note 12. Income Taxes](index=22&type=section&id=Note%2012.%20Income%20Taxes) The company recorded an income tax expense of **$1,128 million** for the first nine months of fiscal 2025, a significant change from the prior year's **$778 million** benefit, primarily due to a **$574 million** valuation allowance charge related to new OECD guidance - Income tax expense for the first nine months of fiscal 2025 was **$1,128 million**, a sharp contrast to the **$778 million** benefit in the same period of fiscal 2024[96](index=96&type=chunk) - The significant tax expense in YTD 2025 included a **$574 million** charge from an increased valuation allowance on deferred tax assets for a Swiss tax credit, due to new OECD global minimum tax guidance[96](index=96&type=chunk)[101](index=101&type=chunk) [Note 14. Shareholders' Equity](index=24&type=section&id=Note%2014.%20Shareholders'%20Equity) The company increased its share repurchase authorization by **$2.5 billion** and repurchased **6 million** shares for **$916 million** in the first nine months of fiscal 2025, while also paying **$2.01** per share in dividends - Paid dividends of **$0.71** per share in Q3 2025 and **$2.01** per share for the first nine months of fiscal 2025[114](index=114&type=chunk) - The board of directors authorized a **$2.5 billion** increase in the share repurchase program; in the first nine months of fiscal 2025, the company repurchased **6 million** shares for **$916 million**[115](index=115&type=chunk) - As of June 27, 2025, **$1.8 billion** remained available for repurchases under the share repurchase authorization[115](index=115&type=chunk) [Note 16. Segment and Geographic Data](index=26&type=section&id=Note%2016.%20Segment%20and%20Geographic%20Data) Following reorganization, Transportation Solutions reported **$6,975 million** in net sales and **$1,353 million** in operating income, while Industrial Solutions generated **$5,538 million** in net sales and **$942 million** in operating income for the first nine months of fiscal 2025 Net Sales by Segment (Nine Months Ended) | Segment | June 27, 2025 (in millions) | June 28, 2024 (in millions) | YoY Change | | :--- | :--- | :--- | :--- | | Transportation Solutions | $6,975 | $7,151 | -2.5% | | Industrial Solutions | $5,538 | $4,626 | +19.7% | | **Total** | **$12,513** | **$11,777** | **+6.2%** | Operating Income by Segment (Nine Months Ended) | Segment | June 27, 2025 (in millions) | June 28, 2024 (in millions) | YoY Change | | :--- | :--- | :--- | :--- | | Transportation Solutions | $1,353 | $1,470 | -8.0% | | Industrial Solutions | $942 | $675 | +39.6% | | **Total** | **$2,295** | **$2,145** | **+7.0%** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported a **13.9%** increase in Q3 2025 net sales, driven by strong Industrial Solutions growth, with a Q4 2025 net sales forecast of approximately **$4.55 billion** and diluted EPS of **$2.18** [Overview and Outlook](index=29&type=section&id=Overview%20and%20Outlook) Q3 FY2025 net sales increased **13.9%** (9.1% organic), led by Industrial Solutions, with Q4 FY2025 net sales projected at approximately **$4.55 billion** and diluted EPS at **$2.18** - Q3 FY2025 net sales increased **13.9%** (9.1% organic), and YTD sales increased **6.2%** (4.8% organic), driven by the Industrial Solutions segment[136](index=136&type=chunk) - The company forecasts Q4 FY2025 net sales of approximately **$4.55 billion** and diluted EPS from continuing operations of approximately **$2.18** per share[137](index=137&type=chunk) [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Q3 net sales rose **13.9%** to **$4.5 billion**, with **9.1%** organic growth, improving gross margin to **35.3%** due to higher volume and improved manufacturing productivity, despite increased SG&A expenses Change in Net Sales (Q3 2025 vs Q3 2024) | Segment | Net Sales Growth | Organic Growth | Translation | Acquisitions | | :--- | :--- | :--- | :--- | :--- | | Transportation Solutions | +2.8% | +1.1% | +1.7% | 0.0% | | Industrial Solutions | +30.0% | +20.5% | +1.8% | +7.7% | | **Total** | **+13.9%** | **+9.1%** | **+1.7%** | **+3.1%** | - Gross margin increased in Q3 and YTD fiscal 2025 due to higher volume and improved manufacturing productivity[150](index=150&type=chunk) - SG&A expenses increased by **$60 million** in Q3 2025 YoY, primarily due to increased selling expenses, higher incentive compensation, and costs from recent acquisitions[153](index=153&type=chunk) [Segment Results](index=35&type=section&id=Segment%20Results) In Q3 2025, Transportation Solutions sales grew **2.8%** with a **1.1%** organic increase, while Industrial Solutions sales surged **30.0%** (20.5% organic), driven by **81.9%** organic growth in Digital Data Networks due to AI demand - **Transportation Solutions:** Q3 net sales increased **2.8%** (1.1% organic), driven by automotive growth in Asia-Pacific; however, operating margin declined from **21.5%** to **19.1%** YoY due to net price erosion[162](index=162&type=chunk)[163](index=163&type=chunk) - **Industrial Solutions:** Q3 net sales grew **30.0%** (20.5% organic), with standout performance in Digital Data Networks (**81.9%** organic growth) due to AI applications; operating margin improved significantly from **15.3%** to **18.7%** YoY, driven by higher volume[167](index=167&type=chunk)[169](index=169&type=chunk) [Liquidity and Capital Resources](index=39&type=section&id=Liquidity%20and%20Capital%20Resources) The company generated **$2.7 billion** in operating cash flow for the first nine months of fiscal 2025, funding **$3.3 billion** in investing activities, including the **$2.3 billion** Richards Manufacturing acquisition, and increasing total debt to **$5.7 billion** - Net cash from operating activities increased to **$2,718 million** in the first nine months of fiscal 2025, up from **$2,435 million** in the prior year[174](index=174&type=chunk) - Acquired Richards Manufacturing for **$2.3 billion** and two other businesses for **$321 million** during the first nine months of fiscal 2025[176](index=176&type=chunk) - Issued new senior notes and terminated a **$1.5 billion** credit agreement to finance the Richards acquisition, with total debt rising to **$5.7 billion**[178](index=178&type=chunk)[179](index=179&type=chunk) - Returned capital to shareholders through **$916 million** in share repurchases and **$594 million** in dividend payments during the first nine months of fiscal 2025[184](index=184&type=chunk)[186](index=186&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no significant changes in its market risk exposures during the first nine months of fiscal 2025, referring investors to its latest Form 10-K for a comprehensive discussion - There have been no significant changes in the company's market risk exposures during the first nine months of fiscal 2025[210](index=210&type=chunk) [Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 27, 2025, with the recently acquired Richards Manufacturing to be excluded from the fiscal 2025 internal control assessment - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 27, 2025[212](index=212&type=chunk) - The company intends to exclude the recently acquired Richards Manufacturing from its annual assessment of internal control over financial reporting for fiscal 2025[214](index=214&type=chunk) [Part II. Other Information](index=46&type=section&id=Part%20II.%20Other%20Information) [Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) No material developments in legal proceedings or environmental matters have occurred since the filing of the last Annual Report on Form 10-K - No material developments in legal proceedings have occurred since the last Annual Report on Form 10-K[218](index=218&type=chunk) [Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported, but potential risks include non-compliance with antitrust laws and adverse U.S. federal tax consequences for certain U.S. shareholders due to CFC rules - A highlighted risk is potential non-compliance with antitrust, competition, and trade regulations, which could result in penalties and limit import/export activities[221](index=221&type=chunk)[222](index=222&type=chunk) - U.S. shareholders owning **10%** or more may face adverse tax consequences due to CFC rules, though recent legislation is expected to eliminate this issue for the company's tax year beginning September 28, 2026[224](index=224&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=47&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2025, the company repurchased approximately **2.0 million** ordinary shares for about **$301 million** at an average price of **$149.92** per share under its repurchase program Issuer Purchases of Equity Securities (Q3 2025) | Period | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | March 29–April 25, 2025 | 710,166 | $131.31 | | April 26–May 30, 2025 | 729,423 | $156.41 | | May 31–June 27, 2025 | 568,623 | $164.82 | | **Total** | **2,008,212** | **$149.92** | [Other Information](index=47&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements during the quarter ended June 27, 2025 - No directors or officers adopted or terminated a Rule 10b5-1 trading plan during the quarter[227](index=227&type=chunk) [Exhibits](index=48&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including supplemental indentures, CEO/CFO certifications, and Inline XBRL data files ```

Key Takeaways TE Connectivity posted Q3 earnings of $2.27 per share, up 18.8% year over year. TEL's net sales rose 14% to $4.53B, driven by the Industrial segment's growth of 30%. TEL shares gained 14.13% pre-market as cash flow hit $1.2B and orders grew 6%.TE Connectivity (TEL) reported third-quarter fiscal 2025 adjusted earnings of $2.27 per share, which increased 18.8% from the year-ago quarter and beat the Zacks Consensus Estimate by 9.13%.Net sales totaled $4.53 billion, beating the consensus estimat ...

TE Connectivity (TEL) Q3 2025 Earnings Call July 23, 2025 08:30 AM ET Company ParticipantsSujal Shah - VP - IRTerrence Curtin - CEO & Executive DirectorHeath Mitts - CFO, EVP & DirectorScott Davis - Chairman, CEO & Founding Partner – Multi-Industry ResearchAmit Daryanani - Senior MD - Equity ResearchJoseph Spak - Managing DirectorJoseph Giordano - Managing DirectorAsiya Merchant - Technology Equity ResearchSteven Fox - Founder & CEOShreyas Patil - VP - Equity ResearchConference Call ParticipantsMark Delaney ...

Financial Data and Key Metrics Changes - The company reported third quarter sales of $4.5 billion, representing a 14% increase year-over-year and exceeding guidance [6][8] - Adjusted earnings per share (EPS) reached a record $2.27, a 19% increase compared to the previous year [6][8] - Adjusted operating margins improved to 20%, up 60 basis points from the prior year [7][8] - Free cash flow generation was $1 billion for the quarter, contributing to a year-to-date total of approximately $2.1 billion [5][19] Business Line Data and Key Metrics Changes - The Industrial segment experienced over 20% organic growth, driven by Digital Data Networks and Energy businesses [6][8] - The Transportation segment saw a 2% organic growth in the auto business, with a notable 11% growth in Asia, offset by a 5% decline in Western regions [10][11] - The Energy business grew 70%, including contributions from the Richards acquisition, with a 20% organic growth rate [12][13] Market Data and Key Metrics Changes - Orders in the Transportation segment increased by 5% year-over-year, with a 17% growth in Asia [9] - The Industrial segment orders grew by 12% year-over-year, reflecting strong momentum in AI applications and energy sectors [9][12] - The global auto market remains uneven, with strength in Asia helping to offset declines in Europe and North America [9][10] Company Strategy and Development Direction - The company is focused on capitalizing on strong demand for AI and energy applications, with significant investments made to broaden its business portfolio [4][5] - A strategic emphasis on localization has resulted in over 70% of production being localized, enhancing customer differentiation [5][6] - The company plans to hold an Investor Day to discuss growth opportunities and value creation [3] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong performance into the fourth quarter, expecting double-digit sales and adjusted EPS growth [6][8] - The company anticipates that the strong demand trends in AI and energy will persist, contributing to future growth [45][46] - Management noted that while there are challenges in Western markets, the overall outlook remains positive due to strong performance in Asia [9][10] Other Important Information - The company returned $1.5 billion to shareholders and deployed $2.6 billion for acquisitions in the Industrial segment [8][19] - The impact of tariffs was approximately 1.5% of sales, with minimal earnings impact, and the company continues to mitigate these through sourcing changes and pricing actions [18][19] Q&A Session Summary Question: Is the AI business fully ramped and scaled? - Management confirmed that AI revenue is expected to exceed $800 million this year, with continued growth anticipated into next year [22][24] Question: What is driving the diversification and growth in the industrial segment? - Management highlighted investments in connectivity and power trends as key drivers of growth, with margins in the industrial segment now exceeding 20% [30][32] Question: Is there any meaningful impact from customers pre-buying to mitigate tariff risk? - Management indicated that there is no significant evidence of pull-ins affecting orders, with growth seen across both segments [38][40] Question: What is the outlook for margins moving forward? - Management expects to maintain margins above 20% in the industrial segment, supported by operational improvements and volume leverage [105][108] Question: How is the company positioned for future acquisitions? - Management expressed confidence in the acquisition pipeline, focusing on bolt-on opportunities to strengthen the energy business [96][98]

TE Connectivity Third Quarter 2025 Earnings July 23, 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 ...

TE Connectivity (TEL) came out with quarterly earnings of $2.27 per share, beating the Zacks Consensus Estimate of $2.08 per share. This compares to earnings of $1.91 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +9.13%. A quarter ago, it was expected that this electronics maker would post earnings of $1.96 per share when it actually produced earnings of $2.1, delivering a surprise of +7.14%. Over the last four quarters, th ...