TE Connectivity TEL is scheduled to report its second-quarter fiscal 2025 earnings results on April 23.

TEL expects fiscal second-quarter adjusted earnings to be around $1.96 per share, implying 5% year-over-year growth. This forecast includes a six-cent impact from currency exchange and tax headwinds.

The Zacks Consensus Estimate for earnings is pegged at $1.96 per share and has remained unchanged over the past 30 days. The estimate indicates 5.38% growth from the figure reported in the year-ago quarter.

TE Connectivity expects net sales of approximately $3.95 billion in the fiscal second quarter. The Zacks Consensus Estimate for sales is pegged at $3.95 billion, indicating a year-over-year decline of 0.4%.

TE Connectivity beat the consensus estimate for earnings in three of the trailing four quarters and was in line in the remaining one, with the average surprise being 1.88%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

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

Key Factors to Consider Ahead of TEL’s Q2 Earnings

TE Connectivity’s second-quarter performance is expected to have benefited from stronger order volumes. TEL reported orders exceeding $4 billion in the first quarter of fiscal 2025, primarily driven by momentum in AI programs. This momentum is expected to have reinforced its outlook for top-line improvement in the second quarter, along with continued expansion in the Industrial Solutions segment.

TE Connectivity is likely to have benefited from strong growth in its Digital Data Networks business, which achieved 48% year-over-year growth in the first quarter, driven by increasing momentum in AI applications across a diverse customer base. This positive trend is expected to have sustained into the to-be-reported quarter.

However, TE Connectivity’s second-quarter performance is likely to have faced pressure from foreign exchange headwinds, with it projecting a year-over-year sales impact of $110 million due to unfavorable currency movements.

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 of 2. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies, which according to our model, have the right combination of elements to beat on earnings in their upcoming releases:

Confluent CFLT currently has an Earnings ESP of +3.70% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

CFLT is set to report its first-quarter 2025 results on April 30. The Zacks Consensus Estimate for earnings is pegged at seven cents per share. The consensus estimate indicates year-over-year growth of 40%.

Corning GLW currently has an Earnings ESP of +2.00% and a Zacks Rank of 2.

GLW is set to report its first-quarter 2025 results on April 29. The Zacks Consensus Estimate for earnings is pegged at 50 cents per share. The consensus estimate indicates year-over-year growth of 31.58%.

Qualcomm QCOM has an Earnings ESP of +3.41% and a Zacks Rank of 2 at present.

QCOM is set to report its second-quarter fiscal 2025 results on April 30. The Zacks Consensus Estimate for earnings is pegged at $2.80 per share. The consensus estimate indicates a year-over-year decline of 14.75%.

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