Benzinga | Apr 20, 2021 10:40AM EDT

Earnings Preview: TE Connectivity

On Wednesday, April 21, TE Connectivity (NYSE:TEL) will release its latest earnings report. Benzinga's outlook for TE Connectivity is included in the following report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

TE Connectivity EPS is expected to be around $1.48, according to sell-side analysts. Sales will likely be near $3.52 billion. In the same quarter last year, TE Connectivity reported EPS of $1.29 on revenue of $3.19 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to post earnings in line with the consensus estimate when it reports Wednesday, EPS would be up 14.73%. Revenue would be up 10.17% on a year-over-year basis. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q1 2021 Q4 2020 Q3 2020 Q2 2020EPS Estimate 1.28 0.84 0.40 1EPS Actual 1.47 1.16 0.59 1.29Revenue Estimate 3.26 B 2.87 B 2.41 B 2.94 BRevenue Actual 3.52 B 3.26 B 2.55 B 3.19 B

Stock Performance

Shares of TE Connectivity were trading at $130.31 as of April 19. Over the last 52-week period, shares are up 93.55%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. TE Connectivity is scheduled to hold the call at 08:30:00 ET and can be accessed here.