Q4 2023 Summary
Published Jan 4, 2025, 1:15 AM UTCInitial Price$133.76June 26, 2023
Final Price$120.52September 26, 2023
Price Change$-13.24
% Change-9.90%
- TE Connectivity is well-positioned to benefit from growth in electric vehicles (EVs), expecting 4–6% outgrowth versus the market due to increased content per vehicle and their leading global position in EV connectivity.
- The company anticipates significant revenue contribution from artificial intelligence (AI) applications, with early ramps already exceeding expectations and potential incremental revenue of over $100 million in 2024.
- TE Connectivity is making progress in margin expansion and expects to improve adjusted operating margins across all segments, with destocking effects normalizing and contributing to enhanced profitability.
- TE Connectivity faces ongoing destocking affecting three of its businesses, including Industrial Equipment, which was worse than expected and is anticipated to continue into early next year, potentially impacting revenue growth. ,
- The company expects a $250 million revenue headwind from foreign exchange rates in fiscal 2024, similar to the previous year, resulting in an anticipated $0.20 EPS headwind, which could pressure overall earnings. , ,
- Operating margins are below the company's targets across all segments, and improvement depends on volume recovery in markets facing headwinds, such as commercial transportation and the Communications segment, which is highly volume-dependent and affected by destocking. ,