What's driving TEL's EPS volatility in 2024-2025?

TE Connectivity's (TEL) EPS is expected to be volatile in 2024-2025 due to several factors:

1. Segmental Performance: The company's EPS is influenced by the performance of its three core segments: Transportation Solutions, Industrial Solutions, and Communication Solutions. Variations in sales, particularly in automotive sales and industrial equipment, can impact EPS. For example, a 4.2% year-over-year decline in automotive sales and an 11% decline in sensor sales have been reported.
2. Geopolitical Factors: TEL's revenue is affected by demand from regional markets, including Europe and North America. Weaker demand in these regions can lead to a decline in EPS. Additionally, macroeconomic headwinds have dimmed its price performance, which could impact EPS.
3. Strategic Investments: TEL's investments in key growth areas such as hybrid and electric vehicles, renewable energy, and artificial intelligence are expected to boost long-term growth but may temporarily strain financial performance, affecting short-term EPS.
4. Tax-Related Impacts: A one-time tax-related impact led to a significant drop in GAAP EPS in fiscal Q1 2025, which could also affect the overall EPS volatility in the period.

In summary, TEL's EPS volatility in 2024-2025 is primarily driven by variations in segmental performance, geopolitical factors, strategic investments, and tax-related impacts.