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Investing.com - Evercore ISI has raised its price target on TE Connectivity (NYSE:TEL) to $200.00 from $195.00 while maintaining an Outperform rating on the stock. The stock, currently trading near its 52-week high with a market cap of $59.2 billion, has shown strong momentum with a 27.3% return year-to-date. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.
TE Connectivity reported June quarter results with revenue of $4.53 billion and earnings per share of $2.27, exceeding street estimates of $4.32 billion and $2.08, respectively. Sales grew 13.9% year-over-year, with organic growth of 9%, driven by better-than-expected performance in both Transportation and Industrial segments.
The company achieved an all-time high operating margin of 19.9%, representing increases of 50 basis points sequentially and 10 basis points year-over-year. This margin improvement was primarily driven by the Industrial segment, which saw segment EBIT margins improve 390 basis points year-over-year to 20.4%.
For the September quarter, TE Connectivity provided guidance of $4.55 billion in revenue and $2.27 in earnings per share, ahead of street expectations of $4.41 billion and $2.14. This outlook reflects year-over-year revenue growth of 12%, with organic growth of 6%.
The company expects its AI revenues to reach $800 million for fiscal year 2025, up from its previous target of $700 million, and projects reaching over $1 billion in AI sales in fiscal year 2026. TE Connectivity also reported that its Automation business is beginning to see tailwinds across all geographies based on initial order trends.
In other recent news, TE Connectivity Ltd reported record third-quarter results, with both adjusted earnings and sales surpassing analyst expectations. The strong performance was attributed to significant growth in the company’s Industrial segment. This development highlights the company’s ability to exceed market projections, reflecting positively on its operational strategies. The announcement of these results has drawn attention from investors and analysts alike. These recent developments underscore TE Connectivity’s robust financial health. The company’s ability to outperform expectations may influence future analyst evaluations and investor interest.
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