TE Connectivity Ltd. (NYSE:TEL) Q4 2023 Earnings Call Transcript

Terrence Curtin: You broke up on that, Wamsi, a little bit. Can you repeat the key questions that you had there? I’m sorry, you broke up on our end.

Wamsi Mohan: I’m sorry. So, first question was around the headwind from FX on revenue. It was $250 million for the year. Wondering what the EPS impact is. And then just the first half versus second half profit growth for next year, you noted 10% in 1Q, but you wrap on some of your price initiatives in the second half.

Terrence Curtin: Yes. Thank you. Sorry about that. Thank you for repeating yourself. Heath will take those.

Heath Mitts: And Wamsi the $250 million of FX, the way we’re looking at is about $0.20 of EPS headwind that we have and from an earnings per share perspective related to that foreign exchange. And of course, that’s as snapping the line in the sand where rates are more or less today. And as rates change throughout the year, we’ll continue to update you on those assumptions. In terms of first half to second half, the second half of — and we’re going to — I’m referring to fiscal 2023, the second half certainly did benefit from some of the pricing catch up that we needed to do, particularly in the Transportation business and the team did execute on that well. As we pivot into the first half versus second half of I think we’re not guiding out that far, but you should expect our margin performance to — as we’ve implied in our guidance for the first quarter to be somewhere in the mid-17 similar to the last quarter, the Q4 quarter, you should expect us to continue to grow from there in the first half to the second half, some of that related to some of the destocking normalizing, as I mentioned earlier on the call and then some of the other initiatives otherwise.

Sujal Shah: Okay. Thank you, Wamsi. We don’t have any further questions. So, please contact Investor Relations at TE if you do have additional questions. Thank you for joining us this morning and have a nice day.

Operator: Today’s conference call will be available for replay beginning at 11:30 A.M. Eastern Time today, November 1, on the Investor Relations portion of TE Connectivity’s website. That will conclude the conference for today. You may now disconnect.