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Market Overview

TE Connectivity's Earnings Outlook


TE Connectivity (NYSE:TEL) announces its next round of earnings this Wednesday, January 27. Here is Benzinga's look at TE Connectivity's Q1 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

TE Connectivity EPS will likely be near $1.28 while revenue will be around $3.26 billion, according to analysts. In the same quarter last year, TE Connectivity announced EPS of $1.21 on revenue of $3.17 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The Wall Street estimate would represent a 5.79% increase in the company's earnings. Sales would be up 2.9% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2020
EPS Estimate 0.84 0.40 1 1.14
EPS Actual 1.16 0.59 1.29 1.21
Revenue Estimate 2.87 B 2.41 B 2.94 B 3.11 B
Revenue Actual 3.26 B 2.55 B 3.19 B 3.17 B

Stock Performance

Shares of TE Connectivity were trading at $127.77 as of January 25. Over the last 52-week period, shares are up 28.58%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. TE Connectivity is scheduled to hold the call at 08:30:00 ET and can be accessed here.


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Posted-In: BZI-EPEarnings