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Investing.com - Evercore ISI has maintained its Outperform rating and $260.00 price target on TE Connectivity (NYSE:TEL) while removing the company from its Tactical Outperform list following strong quarterly results. The stock is currently trading at $245.05, near its 52-week high of $247.34, with InvestingPro data showing the stock is currently trading above its Fair Value estimate.
TE Connectivity reported September quarter revenue of $4.75 billion and earnings per share of $2.44 ($2.59 after adjustments), exceeding street expectations of $4.58 billion and $2.29. The company delivered impressive growth of approximately 17% (11% organic), driven by strong performance in its Industrial segment, which increased 34% year-over-year, and Transportation, which rose 4%. This performance has contributed to TEL’s remarkable 67.9% price return over the past year and 67.6% over the past six months, according to InvestingPro data.
For the December quarter, TE Connectivity provided guidance of $4.5 billion in revenue and $2.53 in earnings per share, surpassing analyst estimates of $4.32 billion and $2.16. About 15 cents of the earnings beat is attributed to a shift in accounting for amortization of intangibles.
Orders accelerated to $4.7 billion, up 22% year-over-year and 5% quarter-over-quarter, with strength across Automotive, Data Device Networking, and Energy segments. The company also noted improving order rates in general industrial end markets, indicating stability and ongoing recovery heading into fiscal year 2026.
TE Connectivity exited fiscal year 2025 with $900 million in AI-centric revenues and expects this figure to exceed $1.5 billion in fiscal year 2026, driven by cloud deployments and processor companies. Management provided a framework for sustained mid-to-high single-digit growth and double-digit EPS growth in fiscal year 2026, supported by industrial recovery, automotive content growth, and AI ramps.InvestingPro analysis reveals that TEL operates with a moderate debt level and has maintained dividend payments for 19 consecutive years, with a 9.2% dividend growth in the last twelve months. The company’s P/E ratio stands at 39.45, reflecting its premium valuation. For deeper insights into TEL’s financial health and growth prospects, check out the comprehensive Pro Research Report, available for TE Connectivity and 1,400+ other top US stocks.
In other recent news, TE Connectivity reported strong fourth-quarter results, surpassing analyst expectations. The company achieved a revenue of $4.75 billion and earnings per share of $2.44, which, after adjustments, reached $2.59. These figures exceeded the anticipated $4.58 billion in revenue and $2.29 earnings per share. The impressive performance was driven by a 34% increase in the Industrial segment and a 4% rise in the Transportation segment, contributing to a 17% year-over-year growth. Following these results, Evercore ISI removed TE Connectivity from its Tactical Outperform list, although it retained an Outperform rating for the stock. The company also provided an optimistic outlook for the first quarter of fiscal 2026, which contributed to a positive market reaction.
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