TE Connectivity (TEL, Financial) reported impressive financial results for the second quarter, achieving revenues of $4.14 billion, which exceeded the consensus estimate of $3.97 billion. The company also saw a 6% increase in orders, reaching $4.25 billion.
According to CEO Terrence Curtin, the company's operational performance was robust, leading to a record adjusted earnings per share and surpassing both sales and earnings guidance. The Transportation segment, in particular, performed admirably by taking advantage of its strong market position in Asia and maintaining healthy margin levels.
Additionally, TE Connectivity's Industrial segment demonstrated significant growth, expanding its operating margin by 17%. This growth was driven by diversified business momentum, particularly in AI, aerospace, and energy sectors.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 16 analysts, the average target price for TE Connectivity PLC (TEL, Financial) is $163.07 with a high estimate of $190.00 and a low estimate of $130.00. The average target implies an upside of 22.20% from the current price of $133.45. More detailed estimate data can be found on the TE Connectivity PLC (TEL) Forecast page.
Based on the consensus recommendation from 21 brokerage firms, TE Connectivity PLC's (TEL, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for TE Connectivity PLC (TEL, Financial) in one year is $152.47, suggesting a upside of 14.25% from the current price of $133.45. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the TE Connectivity PLC (TEL) Summary page.
