TE Connectivity Ltd.


TEL

is scheduled to report third-quarter fiscal 2022 results on Jul 27.

For the fiscal third quarter, the company expects year-over-year net sales growth of 1.4% and 3.3% on a reported and organic basis, respectively. The Zacks Consensus Estimate for the same is pegged at $3.9 billion, suggesting growth of 1.5% from the year-ago reported figure.

TE Connectivity expects adjusted earnings of $1.75 per share. The Zacks Consensus Estimate for the same is also pegged at $1.75 per share, which indicates a decline of 2.2% from the year-ago quarter’s reported figure.

Notably, the company surpassed the Zacks Consensus Estimate for earnings in each of the trailing four quarters, the surprise being 7.55%, on average.

Key Factors to Note

The impacts of TE Connectivity’s footprint-consolidation plans and stringent cost-cutting strategies are expected to get reflected in the fiscal third-quarter results.

Strong momentum across factory automation applications is expected to have driven growth in the company’s industrial equipment sales in the fiscal third quarter. Strength across renewable energy applications is anticipated to have aided the energy business. These factors are expected to have benefited the industrial segment in the quarter under discussion.

In the Communication segment, strengthening momentum across data and devices, as well as appliances, is anticipated to have acted as a tailwind in the quarter under review. The growing traction across high-speed solutions for cloud applications is likely to have been another key catalyst.

Recovering overall auto production, along with the increasing production of hybrid and electric vehicles, is likely to have contributed well to sales growth of the company’s Transportation segment in the to-be-reported quarter. Solid content growth is expected to have driven commercial transportation sales growth in the quarter under review.

All the above-mentioned factors are likely to have benefited TE Connectivity’s top line in the fiscal third quarter.

However, weakening momentum across energy, medical, and aerospace, defense and marine applications is likely to have been a headwind. Disruptions induced by the ongoing pandemic are expected to get reflected in the to-be-reported quarterly results.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for TE Connectivity this time around. The combination of a positive

Earnings ESP

and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our

Earnings ESP Filter

.

TE Connectivity has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell).

Stocks to Consider

Here are some stocks that you may consider, as our model shows that these have the right combination of elements to beat on earnings this season.

KLA Corporation


KLAC

has an Earnings ESP of +0.15% and a Zacks Rank of 3 at present. You can see


the complete list of today’s Zacks #1 Rank stocks here.

KLA is scheduled to release fourth-quarter fiscal 2022 results on Jul 28. The Zacks Consensus Estimate for KLAC’s earnings is pegged at $5.46 per share, suggesting an increase of 23.2% from the prior year’s reported figure.

Advanced Micro Devices

(


AMD


) has an Earnings ESP of +2.14% and a Zacks Rank #3 at present.

Advanced Micro Devices is set to report second-quarter 2022 results on Aug 2. The Zacks Consensus Estimate for AMD’s earnings is pegged at $1.03 per share, which suggests an increase of 63.5% from the prior year’s reported figure.

Aspen Technology


AZPN

has an Earnings ESP of +1.40% and a Zacks Rank #2 at present.

Aspen Technology is set to report fourth-quarter fiscal 2022 results on Aug 8. The Zacks Consensus Estimate for ASPN’s earnings is pegged at $2.15 per share, which suggests an increase of 40.5% from the prior-year period’s reported figure.

Stay on top of upcoming earnings announcements with the

Zacks Earnings Calendar

.

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