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Factors to Note Ahead of Sensata (ST) Q4 Earnings Release
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Sensata Technologies (ST - Free Report) is slated to report fourth-quarter results on Jan 31.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $997 million, which suggests growth of 6.7% from the year-ago quarter’s reported figure. The consensus mark for earnings is pegged at 88 cents per share, indicating a year-over-year increase of 1.2%.
The company has a trailing four-quarter earnings surprise of 2.22%, on average.
For the fourth quarter, the company expects revenues of $980-$1,020 million, suggesting a rise of 5-9% year over year. Adjusted earnings per share are estimated to be 85-91 cents, suggesting a decline of 2% to a rise of 5%. Adjusted net income is expected to be $130-140 million, suggesting a year-over-year decline of 7% to a rise of 1%.
Sensata Technologies Holding N.V. Price and EPS Surprise
The company’s performance in the first quarter is likely to have benefited from continued momentum in the Sensing solutions business segment owing to wins in the electrification segment business. The plan is to generate about $2 billion in revenue from the electrification business by 2026.
Also, continued customer wins through in High Voltage Junction Boxes owing to rising demand for thermally efficient system-level solutions are major tailwinds.
The company’s Sensing solutions business has a strong product portfolio and greater scale to capitalize on attractive opportunities in the multi-billion global automotive sensor market.
In November, the company announced the development of its latest Tire Mounted Sensor, which allows vehicle and tire OEMs to deliver comprehensive data insights beyond the traditional pressure and temperature. The sensor, which includes a TPMS and an accelerometer, is fitted directly to the tire's inner line. The company expects to generate about $100 million in revenue from heavy vehicle TPMS by 2027.
The company plans to expand Electrification and Insights capabilities and create additional value through mergers and acquisitions. The company’s acquisition of Dynapower is likely to help it expand its addressable markets in energy storage and power conversion systems for grid-tied renewable power conversion and green hydrogen production.
However, the company’s performance is likely to be affected due to supply-chain constraints and unfavorable foreign currency movement. Also, inflation-induced higher logistics and material costs are further headwinds.
What Our Model Says
Our proven model does not predict an earnings beat for ST this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
ST has an Earnings ESP of -1.22% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are some stocks you may consider, as our proven model shows that these have the right mix of elements to beat estimates this time around.
The Zacks Consensus Estimate for AAL’s to-be-reported quarter’s earnings and revenues is pegged at 84 cents per share and $12.96 billion, respectively. Shares of AAL have lost 1.3% in the past year.
Axos Financial (AX - Free Report) has an Earnings ESP of +0.16% and currently has a Zacks Rank #2. AX is scheduled to report earnings on Jan 26.
The Zacks Consensus Estimate for AX’s to-be-reported quarter’s earnings and revenues is pegged at $1.24 per share and $216.37 million, respectively. Shares of AX have lost 19.8% in the past year.
Helmerich & Payne (HP - Free Report) has an Earnings ESP of +8.68% and currently has a Zacks Rank #1. HP is scheduled to report earnings on Jan 31.
The Zacks Consensus Estimate for HP’s to-be-reported quarter’s earnings and revenues is pegged at 81 cents per share and $689.3 million, respectively. Shares of HP have gained 70.5% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Factors to Note Ahead of Sensata (ST) Q4 Earnings Release
Sensata Technologies (ST - Free Report) is slated to report fourth-quarter results on Jan 31.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $997 million, which suggests growth of 6.7% from the year-ago quarter’s reported figure. The consensus mark for earnings is pegged at 88 cents per share, indicating a year-over-year increase of 1.2%.
The company has a trailing four-quarter earnings surprise of 2.22%, on average.
For the fourth quarter, the company expects revenues of $980-$1,020 million, suggesting a rise of 5-9% year over year. Adjusted earnings per share are estimated to be 85-91 cents, suggesting a decline of 2% to a rise of 5%. Adjusted net income is expected to be $130-140 million, suggesting a year-over-year decline of 7% to a rise of 1%.
Sensata Technologies Holding N.V. Price and EPS Surprise
Sensata Technologies Holding N.V. price-eps-surprise | Sensata Technologies Holding N.V. Quote
Factors to Note
The company’s performance in the first quarter is likely to have benefited from continued momentum in the Sensing solutions business segment owing to wins in the electrification segment business. The plan is to generate about $2 billion in revenue from the electrification business by 2026.
Also, continued customer wins through in High Voltage Junction Boxes owing to rising demand for thermally efficient system-level solutions are major tailwinds.
The company’s Sensing solutions business has a strong product portfolio and greater scale to capitalize on attractive opportunities in the multi-billion global automotive sensor market.
In November, the company announced the development of its latest Tire Mounted Sensor, which allows vehicle and tire OEMs to deliver comprehensive data insights beyond the traditional pressure and temperature. The sensor, which includes a TPMS and an accelerometer, is fitted directly to the tire's inner line. The company expects to generate about $100 million in revenue from heavy vehicle TPMS by 2027.
The company plans to expand Electrification and Insights capabilities and create additional value through mergers and acquisitions. The company’s acquisition of Dynapower is likely to help it expand its addressable markets in energy storage and power conversion systems for grid-tied renewable power conversion and green hydrogen production.
However, the company’s performance is likely to be affected due to supply-chain constraints and unfavorable foreign currency movement. Also, inflation-induced higher logistics and material costs are further headwinds.
What Our Model Says
Our proven model does not predict an earnings beat for ST this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
ST has an Earnings ESP of -1.22% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are some stocks you may consider, as our proven model shows that these have the right mix of elements to beat estimates this time around.
American Airlines Group (AAL - Free Report) has an Earnings ESP of +9.79% and currently has a Zacks Rank #2. AAL is scheduled to report earnings on Jan 26. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for AAL’s to-be-reported quarter’s earnings and revenues is pegged at 84 cents per share and $12.96 billion, respectively. Shares of AAL have lost 1.3% in the past year.
Axos Financial (AX - Free Report) has an Earnings ESP of +0.16% and currently has a Zacks Rank #2. AX is scheduled to report earnings on Jan 26.
The Zacks Consensus Estimate for AX’s to-be-reported quarter’s earnings and revenues is pegged at $1.24 per share and $216.37 million, respectively. Shares of AX have lost 19.8% in the past year.
Helmerich & Payne (HP - Free Report) has an Earnings ESP of +8.68% and currently has a Zacks Rank #1. HP is scheduled to report earnings on Jan 31.
The Zacks Consensus Estimate for HP’s to-be-reported quarter’s earnings and revenues is pegged at 81 cents per share and $689.3 million, respectively. Shares of HP have gained 70.5% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.