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Financial Performance - Fiscal 2024 net sales decreased by 1.2% to $15,845 million compared to fiscal 2023, with Transportation Solutions down 2.0% and Industrial Solutions down 1.5%[188][198] - Organic net sales were flat in fiscal 2024, with pricing actions positively affecting organic net sales by $105 million[188][203] - The company expects first quarter fiscal 2025 net sales to be approximately $3.9 billion, up from $3.8 billion in the first quarter of fiscal 2024[193] - The gross margin increased by $401 million in fiscal 2024, resulting in a gross margin percentage of 34.4% compared to 31.5% in fiscal 2023[203] - Operating income for fiscal 2024 was $2,796 million, up from $2,304 million in fiscal 2023, resulting in an operating margin of 17.6%, compared to 14.4% in the previous year[210] - The Transportation Solutions segment's net sales decreased by $190 million, or 2.0%, in fiscal 2024, primarily due to a divestiture impact of 1.7% and foreign currency translation of 0.6%[218] - The Industrial Solutions segment's net sales decreased by $70 million, or 1.5%, in fiscal 2024, with organic net sales declining by 3.3%[225] - Communications Solutions segment net sales increased by $71 million, or 3.7%, in fiscal 2024 compared to fiscal 2023, driven primarily by organic net sales growth of 4.8%[230] - Operating income for the Communications Solutions segment rose by $110 million to $361 million in fiscal 2024, with an operating margin of 18.4% compared to 13.2% in fiscal 2023[231] - Organic net sales in the Data and devices category increased by 10.2% in fiscal 2024, attributed to growth in AI applications[230] - Organic net sales in the Appliances category decreased by 3.7% in fiscal 2024 due to reduced demand from inventory corrections and strategic exits from certain product lines[231] - For fiscal year 2024, the net loss was $271 million, a significant improvement from a net loss of $606 million in fiscal year 2023[256] Cash Flow and Capital Management - Net cash provided by operating activities was $3,477 million in fiscal 2024[190] - Cash provided by operating activities increased by $345 million to $3,477 million in fiscal 2024, primarily due to higher pre-tax income[237] - Capital expenditures were $680 million in fiscal 2024, with expectations for fiscal 2025 capital spending to be approximately 5% of net sales[239] - Total debt at fiscal year end 2024 was $4,203 million, a slight decrease from $4,211 million in fiscal year end 2023[242] - Cash and cash equivalents at fiscal year end 2024 totaled approximately $4.7 billion, with a significant portion considered permanently reinvested[236] - The company authorized an increase of $1.5 billion in its share repurchase program, repurchasing approximately 14 million shares for $1,991 million in fiscal 2024[251] - The company sold one business for net cash proceeds of $59 million during fiscal 2024, recording a pre-tax gain on sale of $10 million[196] Expenses and Charges - In fiscal 2024, selling, general, and administrative expenses increased by $62 million to $1,732 million, representing 10.9% of net sales compared to 10.4% in fiscal 2023[205] - Net restructuring charges were $144 million in fiscal 2024, down from $260 million in fiscal 2023, with expected annualized cost savings of approximately $85 million[207] - Interest income rose by $27 million to $87 million in fiscal 2024, attributed to higher interest rates and increased average cash balances[212] Tax and Deferred Assets - The effective tax rate for fiscal 2024 was (14.2)%, compared to 16.0% in fiscal 2023, reflecting a significant change in income tax expense[212] - The valuation allowance for deferred tax assets increased to $8,285 million in fiscal 2024 from $7,416 million in fiscal 2023[215] - The company has significant valuation allowances for deferred tax assets, which may impact future income tax expenses[283] - The company recorded unrecognized income tax benefits of $652 million and related accrued interest and penalties of $80 million, with uncertain timing for realization[263] Business Acquisitions and Divestitures - The company acquired approximately 98.7% of Schaffner Holding AG for CHF 294 million (approximately $339 million) during the first quarter of fiscal 2024[194] - During fiscal 2024, the company acquired one business for $339 million, net of cash acquired[240] Risk Management and Compliance - The company utilizes established risk management policies to manage market risks associated with interest rate and foreign currency movements[301] - The company does not execute transactions for trading or speculative purposes, limiting exposure to major financial institutions[302] - The company settled trade compliance matters with a penalty payment of approximately $6 million during the fourth quarter of fiscal 2024[267] - The company does not expect legal proceedings to have a material adverse effect on its results of operations, financial position, or cash flows[266] Pension and Obligations - The company expects to contribute approximately $70 million to pension plans in fiscal 2025[264] - At fiscal year end 2024, a 25-basis-point decrease in discount rates would have increased the present value of pension obligations by $68 million[289] - A 50-basis-point change in expected long-term returns on plan assets would have impacted fiscal 2024 pension expense by $8 million[289] - Total contractual cash obligations for the company amounted to $6,489 million, with $2,075 million due in fiscal 2025[261] Market Conditions and Commodity Prices - Average copper prices decreased from $4.09 per pound in fiscal 2023 to $3.91 per pound in fiscal 2024, while gold prices increased from $1,860 to $2,027 per troy ounce[204] - Commodity hedges related to expected purchases of gold, silver, copper, and palladium had a net gain position of $55 million at fiscal year end 2024, compared to a net loss of $23 million at fiscal year end 2023[307] - A 10% change in commodity prices from fiscal year end 2024 prices would have altered the unrealized value of forward contracts by $54 million[307] - The unrealized value of cross-currency swap contracts would have changed by $538 million with a 10% currency fluctuation from fiscal year end 2024 market rates[304] Goodwill and Impairment - The company completed its annual goodwill impairment test in the fourth quarter of fiscal 2024 and determined that no impairment existed[280] Other Financial Metrics - The company had outstanding letters of credit and guarantees totaling $186 million at the end of fiscal year 2024, including $22 million related to the divestiture of the Subsea Communications business[259] - The company had $131 million in redeemable noncontrolling interests associated with its First Sensor AG subsidiary[265] - There were no floating debt outstanding at fiscal year end 2024 or 2023, indicating effective interest rate management[305]

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.Zacks Premium includes access to the Zacks Style Scores as well.What are the Zacks Style Scores?The Zac ...

Financial Data and Key Metrics - Q4 sales were $4.1 billion, up 2% organically year-over-year, driven by higher sales from AI applications in the Communications segment [20] - Adjusted EPS for Q4 was $1.95, up 10% year-over-year, with adjusted operating margins at 18.6%, up 130 basis points [21] - Full-year sales were $15.8 billion, with organic growth in Communications and Transportation segments offset by Industrial Equipment weakness [22] - Full-year adjusted EPS was $7.56, up 12% year-over-year, with adjusted operating margins at 18.9%, expanding 220 basis points [23] - Free cash flow for the year was a record $2.8 billion, up 17% year-over-year [23][47] Business Segment Performance Transportation Segment - Auto business declined 1% organically against a 5% global auto production decline, with 400 basis points of outperformance driven by double-digit growth in Asia [28] - Commercial Transportation business declined 4% organically, primarily due to weakness in Europe [31] - Adjusted operating margins for the Transportation segment were 19.3% in Q4 and 20% for the full year, up 300 basis points year-over-year [32] Industrial Solutions Segment - Aerospace & Defense and Energy businesses grew 14% organically, driven by strong demand and supply chain recovery [33][34] - Industrial Equipment business declined 20% organically, with weakness in factory automation, particularly in Europe [35] - Industrial segment margins were 15.6%, in line with expectations given volume levels and business mix [35] Communications Segment - Data & Devices business grew 35% organically, with AI revenue reaching $300 million in fiscal 2024, expected to double in fiscal 2025 [36] - Appliances business grew double digits for the second consecutive quarter, driven by strength in the Americas and Asia [37] - Adjusted operating margins for the Communications segment were 21.7%, showing significant improvement over the prior year [37] Market Trends and Strategic Direction - Global auto production is expected to decline slightly in fiscal 2025, with continued growth in hybrid and electric vehicle production, particularly in Asia [13] - AI applications in the Communications segment are accelerating, with $300 million in sales in fiscal 2024, expected to double in fiscal 2025 [15][36] - The company is investing in Asian operations to support EV growth and expanding engineering capacity for AI-related design wins [17] - Long-term value creation is centered around portfolio alignment with secular growth trends, margin expansion, and strong cash generation [18] Management Commentary on Operating Environment and Outlook - The company expects a return to growth in fiscal 2025, with investments in markets aligned with secular trends expected to accelerate [16][50] - Industrial end markets are expected to return to growth in 2025, with ongoing investments in engineering and capacity [16] - The company announced a $2.5 billion increase to its share repurchase program, reflecting confidence in its cash generation model [11][49] Other Important Information - The company is transitioning to a 2-segment structure, combining Transportation Solutions and Industrial Solutions, effective fiscal 2025 [4][5] - Restructuring charges for fiscal 2025 are expected to be at or below $100 million, with ongoing footprint optimization efforts [41] Q&A Session Summary AI Opportunity - The company expects AI revenue to double to $600 million in fiscal 2025, driven by design wins across a broad customer base [36][57] - AI momentum is accelerating, with orders up 40% year-over-year in Q4, following a 100% increase in the previous quarter [56] Content Outgrowth in Asia - Asia represents the largest revenue region for the company, with over 70% of EV and HEV production occurring there [13][62] - The company achieved mid-double-digit revenue growth in Asia, outperforming regional production growth by 10 points [62] New Segment Structure - The new Industrial segment is expected to finish fiscal 2024 with margins in the high teens, with a goal of reaching 20% over the midterm [69][72] - Transportation segment margins are expected to remain at or above 20%, with growth opportunities in auto and potential recovery in Commercial Transportation [70][72] Industrial Segment Weakness - Factory automation and building automation markets remain weak, particularly in Europe, with potential improvement expected in calendar 2025 [75][76] Capital Allocation - The company plans to deploy capital through share buybacks, dividends, and bolt-on acquisitions, with a $2.5 billion repurchase authorization announced [49][84] - CapEx for fiscal 2025 is expected to be $100 million higher than fiscal 2024, primarily to support AI program growth [96] Automotive Positioning in China - China represents a significant portion of the company's automotive revenue, with $2 billion in sales and strong positioning with local OEMs [87][88] - The company is opening its sixth automotive factory in China to support growth in the region [89] Commercial Vehicle Market - The commercial transportation market is expected to remain weak in fiscal 2025, with potential improvement later in the year [104][107] - The company expects to outperform the market decline by 200 basis points, with margins supported by strong performance in the auto business [105][107] Data & Devices Business - Excluding AI, the traditional datacom business is expected to return to mid-single-digit growth in fiscal 2025, driven by cloud recovery [109] Product Exits in Sensors - The company is completing $50 million of product exits in the Sensors business in fiscal 2025, focusing on automotive, heavy vehicle, medical, and factory automation markets [114]

Core Insights - TE Connectivity (TEL) reported revenue of $4.07 billion for the quarter ended September 2024, marking a year-over-year increase of 0.8% and exceeding the Zacks Consensus Estimate of $4.01 billion by 1.47% [1] - The company's EPS for the quarter was $1.95, compared to $1.78 a year ago, aligning with the consensus EPS estimate [1] Revenue Performance by Segment - Transportation Solutions net sales were $2.31 billion, slightly below the average estimate of $2.32 billion, reflecting a year-over-year decline of 4.2% [3] - Communications Solutions net sales reached $577 million, surpassing the estimated $556.13 million, with a significant year-over-year increase of 24.6% [3] - Industrial Solutions net sales were $1.18 billion, exceeding the average estimate of $1.13 billion, showing a year-over-year growth of 1.8% [3] Adjusted Operating Income - Adjusted Operating Income for Communications Solutions was $125 million, above the average estimate of $113.16 million [3] - Adjusted Operating Income for Transportation Solutions was $446 million, below the average estimate of $474.50 million [3] - Adjusted Operating Income for Industrial Solutions was $184 million, exceeding the average estimate of $171.44 million [3] Stock Performance - TE Connectivity shares have returned +3.5% over the past month, outperforming the Zacks S&P 500 composite's +1.8% change [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [4]

TE Connectivity (TEL) came out with quarterly earnings of $1.95 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $1.78 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this electronics maker would post earnings of $1.86 per share when it actually produced earnings of $1.91, delivering a surprise of 2.69%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. TE Connectivity, w ...

Board of directors authorizes $2.5 billion increase in share repurchase programGALWAY, Ireland, Oct. 30, 2024 /PRNewswire/ -- TE Connectivity plc (NYSE: TEL) today reported results for the fiscal fourth quarter and fiscal year ended Sept. 27, 2024.Fourth Quarter Highlights TE Connectivity (NYSE: TEL) highlights for fiscal 2024. TE Connectivity (NYSE: TEL) highlights for Q4 2024. Net sales were above guidance at $4.1 billion, up 1% on a reported basis year over year and 2% organically. GAAP diluted ...

TE Connectivity (TEL) is scheduled to report its fourth-quarter fiscal 2024 results on Oct. 30. For the fiscal fourth quarter, TE Connectivity expects net sales of $4 billion, with year-over-year organic growth, driven by the Transportation and Communications segments. The Zacks Consensus Estimate for revenues is pegged at $4.01 billion, suggesting a year-over-year decline of 0.72%. Adjusted earnings are projected at $1.94 per share, indicating year-over-year growth of 9%. The consensus mark for fiscal four ...

The upcoming report from TE Connectivity (TEL) is expected to reveal quarterly earnings of $1.94 per share, indicating an increase of 9% compared to the year-ago period. Analysts forecast revenues of $4.01 billion, representing a decrease of 0.7% year over year. The consensus EPS estimate for the quarter has undergone an upward revision of 0.7% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this tim ...

TE Connectivity (TEL) is expected to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on October 30, 2024, might help the stock move higher if these key numbers are better ...