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The third-quarter results for TE Connectivity Ltd. (NYSE:TEL) were released last week, making it a good time to revisit its performance. The result was positive overall - although revenues of US$4.0b were in line with what the analysts predicted, TE Connectivity surprised by delivering a statutory profit of US$1.86 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for TE Connectivity
Following the latest results, TE Connectivity's 20 analysts are now forecasting revenues of US$16.7b in 2025. This would be an okay 5.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to tumble 29% to US$8.10 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$17.0b and earnings per share (EPS) of US$8.24 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$169. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values TE Connectivity at US$190 per share, while the most bearish prices it at US$145. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of TE Connectivity'shistorical trends, as the 4.7% annualised revenue growth to the end of 2025 is roughly in line with the 5.7% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 7.2% annually. So although TE Connectivity is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.