TE Connectivity's stock plummeted 11.20% during pre-market trading on Wednesday, following the release of its fiscal second-quarter earnings report.

The company reported adjusted earnings per share of $2.73, beating analyst estimates, while revenue came in at $4.74 billion, slightly below expectations. However, the primary driver behind the sharp decline appears to be management's warning about significant cost pressures stemming from the ongoing conflict in the Middle East.

TE Connectivity's CEO warned that the company may have to pass higher raw-material costs on to customers if the Iran war continues to disrupt supply chains. The conflict has led to increased costs for transportation, including freight rates, and oil-based products such as resins, which could pressure margins unless price increases are implemented.