[TE Connectivity Third Quarter Fiscal 2025 Results](index=1&type=section&id=TE%20Connectivity%20Third%20Quarter%20Fiscal%202025%20Results) [Third Quarter FY25 Performance Highlights](index=1&type=section&id=Third%20Quarter%20FY25%20Performance%20Highlights) TE Connectivity achieved record Q3 FY25 results, exceeding guidance with double-digit sales and EPS growth, led by Industrial segment Q3 FY2025 Key Financial Metrics | Metric | Value | Year-over-Year Change | | :--- | :--- | :--- | | Net Sales | $4.5 billion | +14% Reported, +9% Organic | | GAAP Diluted EPS | $2.14 | +15% | | Adjusted EPS | $2.27 | +19% | | Orders | $4.5 billion | Up YoY and Sequentially | | Operating Margin | 18.9% | - | | Adjusted Operating Margin | 19.9% | - | | Operating Cash Flow | ~$1.2 billion | - | | Free Cash Flow | $962 million | - | - The strong performance was primarily driven by **30% sales growth in the Industrial segment**, particularly from high-speed connectivity solutions for AI applications and the energy business[3](index=3&type=chunk)[5](index=5&type=chunk) - The Transportation segment saw increased sales despite declines in overall vehicle production, attributed to strength in Asia and innovations in electrification and next-generation vehicle data connectivity[5](index=5&type=chunk)[6](index=6&type=chunk) - Significant capital deployment year-to-date includes the completion of the Richards acquisition for **$2.3 billion** and returning **$1.5 billion** to shareholders[4](index=4&type=chunk) [Fourth Quarter FY25 Outlook](index=3&type=section&id=Fourth%20Quarter%20FY25%20Outlook) The company anticipates continued momentum into Q4 FY25, projecting double-digit sales and adjusted EPS growth Q4 FY2025 Guidance | Metric | Expected Value | Year-over-Year Change | | :--- | :--- | :--- | | Net Sales | ~$4.55 billion | +12% Reported, +6% Organic | | GAAP EPS | ~$2.18 | +140% | | Adjusted EPS | ~$2.27 | +16% | [Consolidated Financial Statements](index=10&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Statements of Operations](index=10&type=section&id=Consolidated%20Statements%20of%20Operations) Q3 FY25 net sales increased to **$4.53 billion**, operating income to **$857 million**, and diluted EPS grew to **$2.14** Q3 FY2025 vs Q3 FY2024 Income Statement (in millions, except EPS) | Metric | Q3 2025 | Q3 2024 | | :--- | :--- | :--- | | Net Sales | $4,534 | $3,979 | | Gross Margin | $1,600 | $1,386 | | Operating Income | $857 | $755 | | Income from Continuing Operations | $638 | $573 | | Diluted EPS from Continuing Operations | $2.14 | $1.86 | [Consolidated Balance Sheets](index=11&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$24.87 billion** as of June 27, 2025, driven by acquisitions, with total liabilities rising to **$12.34 billion** Balance Sheet Comparison (in millions) | Account | June 27, 2025 | September 27, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$24,866** | **$22,854** | | Cash and cash equivalents | $672 | $1,319 | | Goodwill | $7,251 | $5,801 | | **Total Liabilities** | **$12,342** | **$10,368** | | Long-term debt | $4,846 | $3,332 | | **Total Shareholders' Equity** | **$12,381** | **$12,355** | [Consolidated Statements of Cash Flows](index=12&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Nine-month operating cash flow was **$2.72 billion**, with **$3.30 billion** used in investing activities for acquisitions, and **$63 million** in financing activities Nine Months Ended June 27, 2025 Cash Flow Summary (in millions) | Cash Flow Activity | Amount | | :--- | :--- | | Net cash provided by operating activities | $2,718 | | Net cash used in investing activities | $(3,298) | | Net cash used in financing activities | $(63) | | **Net decrease in cash** | **$(647)** | - Investing activities were dominated by **$2.63 billion** used for the acquisition of businesses, net of cash acquired, over the nine-month period[23](index=23&type=chunk) - Financing activities included **$910 million** in share repurchases and **$594 million** in dividend payments, partially offset by **$2.23 billion** in proceeds from debt issuance[23](index=23&type=chunk) [Segment and Sales Analysis](index=14&type=section&id=Segment%20and%20Sales%20Analysis) [Segment Data](index=14&type=section&id=Segment%20Data) In Q3 FY25, Industrial Solutions sales grew **30%** to **$2.12 billion** with a **20.4%** adjusted operating margin, while Transportation Solutions sales increased modestly Q3 FY2025 Segment Performance (in millions) | Segment | Net Sales | YoY Change | Adj. Operating Income | Adj. Operating Margin | | :--- | :--- | :--- | :--- | :--- | | Transportation Solutions | $2,418 | +2.8% | $469 | 19.4% | | Industrial Solutions | $2,116 | +30.0% | $432 | 20.4% | [Reconciliation of Net Sales Growth](index=15&type=section&id=Reconciliation%20of%20Net%20Sales%20Growth) Q3 FY25 total net sales growth was **13.9%**, with **9.1%** organic growth, **1.7%** from currency, and **3.2%** from acquisitions, primarily driven by Industrial Solutions Q3 FY2025 Net Sales Growth Breakdown vs Q3 FY2024 | Component | Growth % | Value (in millions) | | :--- | :--- | :--- | | Organic Net Sales Growth | 9.1% | $361 | | Translation (FX) | 1.7% | $68 | | Acquisitions | 3.2% | $126 | | **Total Net Sales Growth** | **13.9%** | **$555** | - Within the Industrial Solutions segment, the Digital Data Networks business grew **81.9%** organically, and the Energy business grew **20.2%** organically[28](index=28&type=chunk) - The Transportation Solutions segment experienced modest organic growth of **1.1%**, with Automotive growing **1.5%** organically while Sensors declined **3.8%** organically[28](index=28&type=chunk) [Non-GAAP Financial Measures and Reconciliations](index=5&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Reconciliations) [Explanation of Non-GAAP Measures](index=5&type=section&id=Explanation%20of%20Non-GAAP%20Measures) TE Connectivity uses non-GAAP measures to provide supplemental information, enhancing understanding of operating performance and business trends by excluding certain items - The company presents non-GAAP measures to help investors understand performance in the same way management does for internal planning and forecasting[10](index=10&type=chunk) - Key non-GAAP measures include Organic Net Sales Growth (excludes currency, acquisitions/divestitures), Adjusted Operating Income (excludes special charges), Adjusted EPS, and Free Cash Flow (FCF)[11](index=11&type=chunk)[12](index=12&type=chunk)[15](index=15&type=chunk)[16](index=16&type=chunk) [Reconciliation of GAAP to Non-GAAP Measures](index=13&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) Q3 FY25 GAAP operating income of **$857 million** was reconciled to an adjusted **$901 million**, and GAAP diluted EPS of **$2.14** to an adjusted **$2.27** Q3 FY2025 GAAP to Non-GAAP Reconciliation (in millions, except EPS) | Metric | U.S. GAAP | Adjustments | Non-GAAP | | :--- | :--- | :--- | :--- | | Operating Income | $857 | +$44 | $901 | | Operating Margin | 18.9% | - | 19.9% | | Diluted EPS | $2.14 | +$0.13 | $2.27 | - Adjustments primarily consist of acquisition-related charges, restructuring costs, and other net charges[30](index=30&type=chunk) - Forward-looking guidance for Q4 FY25 reconciles a GAAP EPS of **$2.18** to an Adjusted EPS of **$2.27**, with adjustments for restructuring and acquisition-related charges[44](index=44&type=chunk) [Other Information](index=3&type=section&id=Other%20Information) [Conference Call and Webcast](index=3&type=section&id=Conference%20Call%20and%20Webcast) The company held an investor conference call on July 23 to discuss quarterly results, with replay access available via its investor relations website - An investor conference call was held at 8:30 a.m. ET on July 23[8](index=8&type=chunk) [Forward-Looking Statements](index=7&type=section&id=Forward-Looking%20Statements) The earnings release contains forward-looking statements subject to various risks and uncertainties, including business interruptions, economic conditions, and currency fluctuations - The report includes forward-looking statements based on current management expectations, which are subject to risks and uncertainties[17](index=17&type=chunk) - Key risk factors mentioned include business interruptions, demand conditions, competition, currency and commodity price fluctuations, and geopolitical instability[17](index=17&type=chunk)[18](index=18&type=chunk)

Core Insights - TE Connectivity plc reported strong third quarter results for fiscal 2025, exceeding guidance due to robust operational performance and record sales and cash flow [3][5][9] - The company achieved double-digit sales growth, particularly in the Industrial segment, which saw a 30% increase in sales [3][4] - Adjusted operating margins reached 20%, leading to record adjusted EPS and cash generation for the quarter [3][9] Financial Performance - Net sales for the third quarter were a record $4.5 billion, up 14% year over year and 9% organically [9] - GAAP diluted EPS from continuing operations was $2.14, a 15% increase year over year, while adjusted EPS was $2.27, reflecting a 19% year-over-year increase [9] - Operating income was $857 million with an operating margin of 18.9%, and an adjusted operating margin of 19.9% [9][17] Segment Performance - The Industrial Solutions segment reported net sales of $2.1 billion, a 30% increase compared to the previous year, driven by high-speed connectivity solutions for AI applications and growth in the energy sector [4][17] - The Transportation Solutions segment increased sales to $2.4 billion despite declines in vehicle production, supported by strength in Asia and innovations in electrification and vehicle data connectivity [4][17] Cash Flow and Capital Deployment - Cash flow from operating activities for the quarter was approximately $1.2 billion, with free cash flow of $962 million [9][16] - The company completed the acquisition of Richards for $2.3 billion in the Industrial segment and returned $1.5 billion to shareholders [9][16] Fourth Quarter Outlook - For the fourth quarter of fiscal 2025, TE Connectivity expects net sales of approximately $4.55 billion, representing a 12% increase on a reported basis and 6% organically [5] - GAAP EPS from continuing operations is projected to be approximately $2.18, an increase of over 140% year over year, with adjusted EPS expected to be around $2.27, up 16% year over year [5]

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for momentum i ...

Key Takeaways TEL expects fiscal Q3 adjusted EPS of $2.06 and sales of $4.30B. Growth in Asia's hybrid and EV markets is boosting TEL's automotive business. AI, Energy, and Aerospace demand support TEL's Industrial segment.TE Connectivity (TEL) is scheduled to report its third-quarter fiscal 2025 earnings results on July 23.TEL expects fiscal third-quarter adjusted earnings to be around $2.06 per share, suggesting 8% year-over-year growth. This forecast includes a 4-cent impact from the Richards acquisiti ...

Core Insights - Telenor Group reported strong second-quarter results for 2025, leading to an increased EBITDA outlook for both the Nordics and the Group overall [1][3] - The company is enhancing its position in the Nordic fibre market with significant investments, including a NOK 1.4 billion investment in Finland and a NOK 6 billion acquisition of GlobalConnect's consumer business in Norway [1][8] Financial Performance - Telenor achieved a year-over-year organic growth of 2.9% in service revenues and 8.3% in EBITDA during the second quarter [2] - The Nordic segment was the primary driver, with an impressive 12.5% organic growth in adjusted EBITDA [2] - For the first half of 2025, adjusted EBITDA reached NOK 18.0 billion, with free cash flow before M&A at NOK 4.6 billion [3] Regional Highlights - In the Nordics, Telenor experienced a 3.7% organic growth in service revenues [4] - Telenor Norway outperformed expectations with a 3.7% growth in service revenues and a 16.1% increase in adjusted EBITDA [5] - Telenor Pakistan reported a robust 15.0% growth in service revenues, while Grameenphone maintained good performance despite market challenges in Bangladesh [6] Strategic Investments - Telenor plans to upgrade DNA's broadband infrastructure to an all-fibre network in Finland by 2028, with an investment of approximately NOK 1.4 billion [7] - The acquisition of GlobalConnect's consumer business, valued at NOK 6 billion, includes fibre infrastructure and around 140,000 fibre customers [8] - These investments are expected to create synergies and enhance customer experiences across the telecom market [9] Future Outlook - The Nordic business anticipates mid-single-digit organic growth in EBITDA, with capex expected to account for around 14% of revenues [15] - Free cash flow before M&A is projected to be around NOK 13 billion [15]

Fornebu, Norway – 17 July 2025 – Telenor Group has today signed an agreement to sell its 50% stake in Allente to Viaplay for a total consideration of SEK 1.1 billion. Allente, a joint venture between Telenor and Viaplay, was formed in May 2020 through the merger of Canal Digital and Viasat. Allente is a distributor of premium TV content serving residential subscribers and several business customers across the Nordics. The transaction will not affect customers, who will continue to receive the same high-qual ...

Company Overview - Ouster, Inc. (OUST) shares increased by 14.5% to $28.3 in the last trading session, with a notable trading volume, and have gained 24.2% over the past four weeks [1] - Ouster is experiencing growth due to the rising adoption of LiDAR technology in various sectors including automotive, industrial, robotics, and smart infrastructure [1] Financial Performance - Ouster is projected to report a quarterly loss of $0.48 per share, reflecting a year-over-year change of +9.4%, with expected revenues of $34 million, up 26% from the previous year [2] - The consensus EPS estimate for Ouster has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] Industry Comparison - Ouster is part of the Zacks Electronics - Miscellaneous Components industry, where TE Connectivity (TEL) has a consensus EPS estimate of $2.07, showing a year-over-year change of +8.4% [3][4] - TE Connectivity's stock finished the last trading session down 0.4% at $175.44, with a return of 6.5% over the past month [3]

Market Overview - The broader equity markets have shown a steady uptrend as investors remain optimistic despite tariff threats from President Trump on 14 countries, including Japan and South Korea [1] - Investors are hopeful for a mutually beneficial solution to avoid market turmoil as they look forward to a busy earnings season [1][2] Trade Relations - Positive discussions between U.S.-China diplomats regarding trade tariffs and potential peace talks between U.S. officials and Iran have contributed to market stability [2] - Investors are awaiting clarity on interest rate cuts with inflation data expected to be released soon [2] Investment Strategy - Investors are advised to focus on "cash cow" stocks that provide higher returns, emphasizing the importance of attractive efficiency ratios like return on equity (ROE) [3] - High ROE indicates effective reinvestment of cash at a high rate of return, distinguishing profitable companies from less efficient ones [4][5] Stock Screening Parameters - Stocks are screened based on criteria including cash flow greater than $1 billion and ROE exceeding industry averages [6] - Additional metrics include Price/Cash Flow lower than industry average and Return on Assets (ROA) greater than industry average [7] Featured Stocks - **Walt Disney**: Long-term earnings growth expectation of 11.8% with a trailing four-quarter earnings surprise of 16.4% on average, Zacks Rank 2 [8][9] - **TE Connectivity**: Long-term earnings growth expectation of 9.8% with a trailing four-quarter earnings surprise of 3.3% on average, Zacks Rank 2 [10][11] - **Fortinet**: Long-term earnings growth expectation of 13.4% with a trailing four-quarter earnings surprise of 23.8% on average, Zacks Rank 2 [12][13] - **Banco Bilbao**: Long-term earnings growth expectation of 5.5% with a trailing four-quarter earnings surprise of 6.3% on average, Zacks Rank 1 [13][14] - **Colgate-Palmolive**: Long-term earnings growth expectation of 5.2% with a trailing four-quarter earnings surprise of 4% on average, Zacks Rank 2 [14][15]

Investment Ratings - Amphenol (APH) is rated as Buy with a target price of $115 based on a 35x P/E multiple for F24M EPS [1][49][51] - TE Connectivity (TEL) is upgraded to Buy with a target price of $200 based on a 20x P/E multiple for F24M EPS [1][57][60] Core Insights - The report maintains a constructive outlook on the connector industry, driven by solid demand fundamentals and increased electrification across various end markets [9][58] - Recent stabilization in automotive market production and improving industrial demand are key factors for the upgrade of TEL to Buy [1][9] - Amphenol is expected to benefit from AI-led demand and a balanced end market exposure, while TEL is positioned for margin expansion due to improved industrial demand [1][33][58] Summary by Sections Amphenol (APH) - APH is a leading manufacturer in the connector market with a diversified end market exposure, including industrial (23%), automotive (17%), and IT data communications (37%) [49][50] - The company is expected to see above-market sales and earnings growth driven by technology hardware spending and AI infrastructure [50][51] - The target price of $115 reflects a premium to its historical P/E multiple, indicating strong growth potential [51][52] TE Connectivity (TEL) - TEL is the largest electronics connector company, with a significant portion of its revenue (40%) coming from the automotive sector [56][57] - The company is expected to benefit from stabilizing automotive trends and improving industrial demand, with a strong balance sheet supporting its growth [58][60] - The target price of $200 is based on a valuation that aligns with its long-term median P/E, reflecting its market position and growth prospects [60] Market Trends - The connector market is anticipated to show continued momentum in 2025, supported by growth in IT Datacom and industrial automation spending [58] - The automotive market is stabilizing, which is crucial for TEL as it represents a significant revenue source [9][58] - AI demand is expected to ramp up, particularly in the data center segment, which is beneficial for both APH and TEL [15][58]

Core Viewpoint - Telenor has announced the acquisition of GlobalConnect's consumer business in Norway for NOK 6.0 billion, aiming to strengthen its position in the Norwegian fibre market [1][3]. Group 1: Strategic Importance - The acquisition includes fibre infrastructure and approximately 140,000 fibre customers, serving as a key component in Telenor's long-term strategy to enhance its fibre footprint in Norway [3][5]. - Telenor's market share of fibre subscriptions is expected to increase from 22% to 29% as a result of this transaction, based on 2024 NKOM data [7]. Group 2: Customer and Employee Benefits - Customers will gain access to a variety of services, including advanced digital security and premium home networks, supported by Telenor's high-quality connectivity [4][5]. - Telenor emphasizes its commitment to continued investments in fraud prevention, secure WiFi, and digital protection, enhancing the overall customer experience [4]. Group 3: Financial Aspects - GlobalConnect's consumer portfolio generated revenues exceeding NOK 0.6 billion in 2024, with Telenor expecting an EBITDA of around NOK 0.3 billion in each of the first two years post-integration [8]. - Annual post-integration cost savings are estimated at approximately NOK 0.15 billion, driven by efficiencies in sales, operations, and maintenance [9]. - Integration capital expenditures are projected to be around NOK 0.3 billion from 2026 to 2028, primarily incurred in the first two years [9].