TE Connectivity’s TEL first-quarter fiscal 2025 Transportation Solutions sales of $2.24 billion lagged the Zacks Consensus Estimate by 4.02%. The segment’s sales declined 6.3% year over year on a reported basis and dropped 5% organically.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

In the reported quarter, TEL’s adjusted earnings of $1.95 per share beat the Zacks Consensus Estimate by 3.17%. The earnings figure increased 3.17% year over year.

Net sales totaled $3.84 billion, missing the consensus estimate by 1.92% and was flat on a year-over-year basis.
 

Click here to check the details of TE Connectivity’s first-quarter fiscal 2025 results.

TEL shares were up 4.6% post fiscal first quarter results. TE Connectivity shares have appreciated 8% in the trailing 12-month period compared with the Zacks Computer and Technology sector’s jump of 29.3%.

TEL to Suffer From Weak Transportation, Forex Headwind

Beginning first-quarter fiscal 2025, TEL reorganized business into two segments: Transportation Solutions and Industrial Solutions that accounted for 58.5% and 41.5% of sales, respectively.

TE Connectivity is suffering from a challenging macroeconomic environment and unfavorable forex due to a stronger U.S. dollar. TEL expects unfavorable forex to hurt fiscal 2025 revenues by more than $300 million on a year-over-year basis.

In the fiscal first quarter, Transportation sales were negatively impacted by weakness in commercial transportation and sensor end markets. Auto sales declined 3% organically in the reported quarter. 

TEL continues to expect global auto production to decline 1% to 2% in fiscal 2025. It expects content growth to be at the low end of the 4-to-6-point range for the year. However, the company expects continued strong growth in hybrid and EV production.    

In the commercial transportation segment, demand for heavy truck is expected to improve later this year, which bodes well for TEL’s top-line growth.

Zacks Rank & Upcoming Earnings to Watch Out

Currently, TE Connectivity has a Zacks Rank #4 (Sell). 

Bill Holdings BILL, Fortinet FTNT and Impinj PI are some better-ranked stocks that investors can consider in the broader Zacks Computer & Technology sector. Each of the three stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Bill Holdings shares have appreciated 25.6% in the trailing 12-month period. BILL is set to report its second-quarter fiscal 2025 results on Feb. 6.

Fortinet shares have returned 48.6% in the trailing 12-month period. FTNT is set to report its fourth-quarter fiscal 2024 results on Feb. 6.

Impinj shares are up 36.1% in the trailing 12-month period. PI is set to report its fourth-quarter 2024 results on Feb. 5.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

TE Connectivity Ltd. (TEL) : Free Stock Analysis Report

Fortinet, Inc. (FTNT) : Free Stock Analysis Report

Impinj, Inc. (PI) : Free Stock Analysis Report

BILL Holdings, Inc. (BILL) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research