Following favorable quarterly results from a slew of banks last week, a few tech stocks are expected to stand out in this week’s earnings lineup, with TE Connectivity TEL) and Texas Instruments TXN) being of interest in particular.
Ahead of their reports on Wednesday, April 22, TE Connectivity and Texas Instruments stock are both sporting a Zacks Rank #2 (Buy), highlighted by expectations of strong EPS growth.
TE Connectivity is a global technology company that designs and manufactures connectivity and sensor solutions for a wide range of industries, while Texas Instruments looks intriguing as a renowned original equipment manufacturer and global semiconductor leader that specializes in analog and embedded processing chips.
Quarterly Expectations & Consistent Earnings Beats
Set to report results for its fiscal second quarter, TE Connectivity’s Q2 sales are expected to be up 13% to $4.7 billion from $4.14 billion a year ago. Even better, Q2 earnings are expected to spike 28% to $2.70 per share compared to EPS of $2.10 in the prior year quarter.
It’s also noteworthy that TE Connectivity has reached or exceeded the Zacks EPS Consensus for a remarkable 41 consecutive quarters, posting an average earnings surprise of 7.48% in its last four quarterly reports.
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As for Texas Instruments, which will be reporting its calendar-standard first-quarter results, Q1 sales are projected to come in at $4.52 billion, an 11% year over year increase from $4.07 billion in the comparative quarter. Texas Instruments’ quarterly EPS is expected to be up 7% to $1.37, versus $1.28 per share in Q1 2025.
While Texas Instruments slightly missed its most recent Q4 EPS estimates, the company has still posted an average earnings surprise of 6.49% over the last four quarters and had previously exceeded bottom-line expectations in nine straight quarterly reports. Furthermore, the Q4 earnings miss was only the third time Texas Instruments came short of EPS expectations since 2012.
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Strengthening EPS Trajectories
Based on Zacks estimates, TE Connectivity’s full-year EPS is now projected to spike 26% to $11.08, with annual earnings forecasted to increase another 11% in FY27 to $12.34 per share.
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Just as intriguing, has been Texas Instruments’ return to increased profitability as annual earnings are expected to increase 16% this year to $6.35 per share, with FY27 EPS projected to spike another 19% to $7.60.
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Bottom Line
TE Connectivity and Texas Instruments are two of the more intriguing growth stocks to watch as their quarterly results approach this week. Furthermore, it would be no surprise if both of these tech leaders provide strong reports that further boost investor sentiment, considering their history of consistently outperforming earnings expectations.
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Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
TE Connectivity Ltd. (TEL) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
