TE Connectivity (TEL) to Post Q3 Earnings: What's in Store?
TE Connectivity Ltd. TEL is scheduled to report third-quarter fiscal 2020 results on Jul 29.
For the fiscal third quarter, the Zacks Consensus Estimate for revenues is pegged at $2.4 billion, indicating a decline of 29.6% from the prior-year quarter.
Further, the consensus mark for earnings stands at 42 cents per share, suggesting a decrease of 72% from the year-ago reported figure.
Notably, the company has surpassed the Zacks Consensus Estimate in each of the trailing four-quarter, the average surprise being 10.9%.
TE Connectivity Ltd. Price and EPS Surprise
Factors to Note
TE Connectivity’s footprint consolidation plans and stringent cost cutting strategies are expected to get reflected in the fiscal third-quarter results.
Further, strong momentum across defence, medical and energy businesses may have driven the industrial segment’s performance in the to-be-reported quarter.
Additionally, solid demand for data and devices in cloud applications and data centers courtesy of increasing work-from-home trend amid the ongoing coronavirus pandemic might have benefited the communications segment’s performance in the quarter under review.
Moreover, acquisition of First Sensor is expected to have favored TE Connectivity’s sensors business in the fiscal third quarter.
Growing proliferation of autonomous features is also expected to have acted as a tailwind. Additionally, increasing production of hybrid and electric vehicles is anticipated to have contributed to the fiscal third-quarter performance.
Furthermore, TE Connectivity’s company’s strong focus on content growth across its businesses might have driven the to-be-reported quarter’s performance. Moreover, the company’s expanding content in engineered solutions is likely to get reflected in the fiscal third-quarter results.
However, coronavirus-led disruptions are expected to have weighed on the company’s performance in the commercial transportation and commercial aerospace market in the to-be-reported quarter.
What Our Model Says
Our proven model conclusively predicts 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 +0.3% and a Zacks Rank #3.
Other Stocks to Consider
Here are some other stocks you may consider, as our proven model shows that thesetoo have the right combination of elements to post an earnings beat this quarter.
JD.com, Inc. JD has an Earnings ESP of +13.79% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Wayfair, Inc. W has an Earnings ESP of +43.47% and a Zacks Rank of 2.
Etsy, Inc. ETSY has an Earnings ESP of +1.15% and a Zacks Rank #2.
Zacks’ Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each picked their favorite to gain +100% or more in months to come. From those 5, Zacks Director of Research, SherazMian hand-picks one to have the most explosive upside of all.
With users in 180 countries and soaring revenues, it’s set to thrive on remote working long after the pandemic ends. No wonder it recently offered a stunning $600 million stock buy-back plan.
The sky’s the limit for this emerging tech giant. And the earlier you get in, the greater your potential gain.
Click Here, See It Free >>
Click to get this free report
TE Connectivity Ltd. (TEL): Free Stock Analysis Report
JD.com, Inc. (JD): Free Stock Analysis Report
Wayfair Inc. (W): Free Stock Analysis Report
Etsy, Inc. (ETSY): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.