TE Connectivity Ltd. (NYSE:TEL) Just Released Its Third-Quarter Earnings: Here's What Analysts Think

Investors in TE Connectivity Ltd. (NYSE:TEL) had a good week, as its shares rose 3.8% to close at US$156 following the release of its third-quarter results. 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. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for TE Connectivity

Taking into account the latest results, the current consensus from TE Connectivity's 20 analysts is for revenues of US$16.8b in 2025. This would reflect a satisfactory 6.0% increase on its revenue over the past 12 months. Statutory earnings per share are expected to nosedive 29% to US$8.10 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$17.1b and earnings per share (EPS) of US$8.24 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$168. 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. There are some variant perceptions on TE Connectivity, with the most bullish analyst valuing it at US$190 and the most bearish at US$145 per share. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 4.8% growth on an annualised basis. That is in line with its 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 7.0% annually. So although TE Connectivity is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple TE Connectivity analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - TE Connectivity has 1 warning sign we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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