TE Connectivity to Report Q2 Earnings: Buy Now or Wait for Results?

Core Viewpoint - TE Connectivity (TEL) is expected to report its second-quarter fiscal 2025 earnings on April 23, with adjusted earnings projected at $1.96 per share, reflecting a 5% year-over-year growth despite currency and tax headwinds [1][2]. Financial Performance - The anticipated net sales for the fiscal second quarter are approximately$ 3.95 billion, indicating a slight year-over-year decline of 0.4% [2]. - The Zacks Consensus Estimate for earnings remains unchanged at $1.96 per share, suggesting a growth of 5.38% compared to the previous year [1][2]. Market Dynamics - TEL's second-quarter performance is expected to benefit from stronger order volumes, with reported orders exceeding$ 4 billion in the first quarter, largely driven by AI program momentum [3]. - The Digital Data Networks business is projected to have continued its strong growth, achieving 48% year-over-year growth in the first quarter, fueled by increasing AI application demand [4]. Challenges - The company anticipates facing pressure from foreign exchange headwinds, projecting a year-over-year sales impact of $110 million due to unfavorable currency movements [5]. Earnings Expectations - According to the Zacks model, TEL currently has an Earnings ESP of 0.00% and a Zacks Rank of 2, indicating a neutral outlook for an earnings beat [6].