TEL Gears Up to Report Q4 Earnings: What's in Store for the Stock?

TE Connectivity TEL is scheduled to report its fourth-quarter fiscal 2025 earnings results on Oct. 29.

TEL expects fiscal fourth-quarter adjusted earnings to be around $2.27 per share, suggesting 16% year-over-year growth. The Zacks Consensus Estimate for earnings is pegged at $2.29 per share, unchanged over the past 30 days, and indicates 17.4% growth from the figure reported in the year-ago quarter.

TE Connectivity expects net sales of approximately $4.55 billion in the fourth quarter of fiscal 2025, indicating roughly 12% year-over-year growth and 6% organically. The Zacks Consensus Estimate for fiscal fourth-quarter sales is in line with the management’s guidance.

TE Connectivity beat the Zacks Consensus Estimate for earnings in all the trailing four quarters, with the average surprise being 4.86%. 
 

TE Connectivity Ltd. Price and EPS Surprise

TE Connectivity Ltd. price-eps-surprise | TE Connectivity Ltd. Quote

Let’s see how things have shaped up for the upcoming announcement.

Key Factors to Consider for TEL’s Q4 Earnings

TE Connectivity’s fourth-quarter fiscal 2025 performance is expected to have benefited from stronger order volumes. TEL reported orders of $4.5 billion in the third quarter of fiscal 2025, which increased 8% year over year and 5% sequentially. This momentum is expected to have continued in the fiscal fourth quarter. 

In the Transportation segment (53.3% of fiscal third-quarter sales), TE Connectivity is expected to have benefited from strong growth in Asia in the automotive, commercial transportation and sensors domains. TE Connectivity is well-positioned to capture increasing value as the industry transitions toward electrification. TEL expects 20% growth in hybrid and electric vehicle production, with roughly 80% of that production occurring in Asia in the remaining half of the fiscal year.

TE Connectivity’s Industrial segment (46.7% of third-quarter fiscal 2025 sales) is expected to have benefited from strong demand for artificial intelligence (AI) applications, Energy, and Aerospace, Defense and Marine. Although higher tariffs are a concern for TEL, the company’s localized manufacturing footprint minimizes tariff impact, which bodes well for margin expansion. For the fourth quarter of fiscal 2025, tariffs are expected to have negatively impacted sales by 1.5%, similar to the fiscal third quarter.

What Our Model Says

According to the Zacks model, 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. But that is not the exact case here.

TE Connectivity currently has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some other companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Corning GLW has an Earnings ESP of +4.15% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. Corning is slated to report third-quarter 2025 results on Oct. 28. 

Meta Platforms META has an Earnings ESP of +3.03% and a Zacks Rank #2 at present. Meta Platforms is scheduled to report third-quarter 2025 results on Oct. 29.

AMETEK AME has an Earnings ESP of +1.21% and a Zacks Rank #2 at present. AMETEK is set to report third-quarter 2025 results on Oct. 30. 

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This article originally published on Zacks Investment Research (zacks.com).

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