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Sensata (ST) Q2 Earnings & Revenues Top Estimates, Up Y/Y
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Sensata Technologies Holding plc (ST - Free Report) reported strong second-quarter 2023 results, with the top and bottom lines surpassing the Zacks Consensus Estimate.
On an adjusted basis, the company reported earnings per share (EPS) of 97 cents compared with 83 cents reported in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 95 cents per share.
Quarterly revenues aggregated $1,062.1 million, up 4.1% year over year. The top line beat the consensus estimate by 3.1%. Unfavorable currency changes reduced revenues by 1.4%.
Sensata Technologies Holding N.V. Price, Consensus and EPS Surprise
Performance Sensing revenues (71.3% of the total revenues) increased 3.5% year over year to $757.4 million. The Automotive sector benefited from price realization and strong market growth, partly offset by unfavorable foreign currency movement and launch delays. Segment operating income was $191.1 million compared with $179.3 million reported in the prior-year quarter.
Sensing Solutions revenues (28.7% of total revenues) were $304.7 million, up 5.5% from the year-ago quarter. The year-over-year uptick was caused by solid aerospace and industrial revenue growth. The segment’s operating income decreased to $84.2 million from $85.7 million, mainly due to the dilutive impact of acquisitions.
On Apr 1, 2023, the company established a new Insights reporting segment to be consistent with new management reporting and offer visibility to the company’s revenue growth and margin advancement. The financial results of Insights have been included in the Performance Sensing segment.
Other Details
In the quarter under review, overall organic revenues were up 3.4%. The heavy vehicle off-road business witnessed a 1.8% increase in organic revenue growth. The automotive business reported organic revenue growth of 6.7%. The industrial business declined 4.7% organically. The aerospace business witnessed a 21.5% increase in organic revenues.
Total operating expenses were $944.1 million, up 7.1% compared with the prior-year quarter, primarily due to higher restructuring charges. Adjusted operating income was $205.7 million, up 6.2% compared with the year-ago quarter. The uptick was mainly caused by favorable pricing and productivity improvements, partially offset by unfavorable movements in foreign currency and the dilutive impact of acquisitions.
Adjusted EBITDA totaled $234.7 million in the quarter, up from $220.4 million in the previous year’s quarter.
Cash Flow & Liquidity
In the quarter under review, Sensata generated $115.7 million of net cash from operating activities compared with $94.5 million in the prior year. Free cash flow was $68.2 million compared with $56.1 million a year ago.
As of Jun 30, 2023, the company had $857.3 million in cash and cash equivalents and $3,770.5 million of net long-term debt compared with $1,034.1 million and $3,768.6 million, respectively, as of Mar 31, 2023.
In the quarter under review, Sensata returned $25 million to shareholders via quarterly dividends.
Guidance
Sensata provided guidance for the third quarter of 2023. For the quarter, the company expects revenues in the range of $980-$1,020 million, suggesting a decline of 4% to breakeven year over year. Adjusted operating income is expected to be between $183 and 199 million, indicating a year-over-year decline of 7% to a rise of 1%.
Adjusted EPS is estimated to be 84-94 cents, suggesting a decline of 1% to a rise of 11%. Adjusted net income is expected to be in the range of $129-143 million, suggesting a year-over-year decline of 2% to a rise of 9%.
The Zacks Consensus Estimate for InterDigital’s 2023 EPS has increased 0.1% in the past 60 days to $8.08. The company’s long-term earnings growth rate is 13.9%.
InterDigital’s earnings beat estimates in all the trailing four quarters, delivering an average surprise of 170.9%. Shares of IDCC have rallied 53.9% in the past year.
The Zacks Consensus Estimate for Badger Meter’s 2023 EPS has increased 4.8% in the past 60 days to $2.82.
Badger Meter’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 6.7%. Shares of BMI have surged 80.5% in the past year.
The Zacks Consensus Estimate for Woodward’s fiscal 2023 EPS has increased 0.8% in the past 60 days to $3.61.
WWD’s long-term earnings growth rate is 13.5%. Shares of WWD have gained 20.2% in the past year.
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Sensata (ST) Q2 Earnings & Revenues Top Estimates, Up Y/Y
Sensata Technologies Holding plc (ST - Free Report) reported strong second-quarter 2023 results, with the top and bottom lines surpassing the Zacks Consensus Estimate.
On an adjusted basis, the company reported earnings per share (EPS) of 97 cents compared with 83 cents reported in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 95 cents per share.
Quarterly revenues aggregated $1,062.1 million, up 4.1% year over year. The top line beat the consensus estimate by 3.1%. Unfavorable currency changes reduced revenues by 1.4%.
Sensata Technologies Holding N.V. Price, Consensus and EPS Surprise
Sensata Technologies Holding N.V. price-consensus-eps-surprise-chart | Sensata Technologies Holding N.V. Quote
Segmental Results
Performance Sensing revenues (71.3% of the total revenues) increased 3.5% year over year to $757.4 million. The Automotive sector benefited from price realization and strong market growth, partly offset by unfavorable foreign currency movement and launch delays. Segment operating income was $191.1 million compared with $179.3 million reported in the prior-year quarter.
Sensing Solutions revenues (28.7% of total revenues) were $304.7 million, up 5.5% from the year-ago quarter. The year-over-year uptick was caused by solid aerospace and industrial revenue growth. The segment’s operating income decreased to $84.2 million from $85.7 million, mainly due to the dilutive impact of acquisitions.
On Apr 1, 2023, the company established a new Insights reporting segment to be consistent with new management reporting and offer visibility to the company’s revenue growth and margin advancement. The financial results of Insights have been included in the Performance Sensing segment.
Other Details
In the quarter under review, overall organic revenues were up 3.4%. The heavy vehicle off-road business witnessed a 1.8% increase in organic revenue growth. The automotive business reported organic revenue growth of 6.7%. The industrial business declined 4.7% organically. The aerospace business witnessed a 21.5% increase in organic revenues.
Total operating expenses were $944.1 million, up 7.1% compared with the prior-year quarter, primarily due to higher restructuring charges. Adjusted operating income was $205.7 million, up 6.2% compared with the year-ago quarter. The uptick was mainly caused by favorable pricing and productivity improvements, partially offset by unfavorable movements in foreign currency and the dilutive impact of acquisitions.
Adjusted EBITDA totaled $234.7 million in the quarter, up from $220.4 million in the previous year’s quarter.
Cash Flow & Liquidity
In the quarter under review, Sensata generated $115.7 million of net cash from operating activities compared with $94.5 million in the prior year. Free cash flow was $68.2 million compared with $56.1 million a year ago.
As of Jun 30, 2023, the company had $857.3 million in cash and cash equivalents and $3,770.5 million of net long-term debt compared with $1,034.1 million and $3,768.6 million, respectively, as of Mar 31, 2023.
In the quarter under review, Sensata returned $25 million to shareholders via quarterly dividends.
Guidance
Sensata provided guidance for the third quarter of 2023. For the quarter, the company expects revenues in the range of $980-$1,020 million, suggesting a decline of 4% to breakeven year over year. Adjusted operating income is expected to be between $183 and 199 million, indicating a year-over-year decline of 7% to a rise of 1%.
Adjusted EPS is estimated to be 84-94 cents, suggesting a decline of 1% to a rise of 11%. Adjusted net income is expected to be in the range of $129-143 million, suggesting a year-over-year decline of 2% to a rise of 9%.
Zacks Rank & Stocks to Consider
Sensata currently has a Zacks Rank #3 (Hold)
Some better-ranked stocks in the broader technology space are InterDigital (IDCC - Free Report) , Badger Meter (BMI - Free Report) and Woodward (WWD - Free Report) . Each of these companies presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for InterDigital’s 2023 EPS has increased 0.1% in the past 60 days to $8.08. The company’s long-term earnings growth rate is 13.9%.
InterDigital’s earnings beat estimates in all the trailing four quarters, delivering an average surprise of 170.9%. Shares of IDCC have rallied 53.9% in the past year.
The Zacks Consensus Estimate for Badger Meter’s 2023 EPS has increased 4.8% in the past 60 days to $2.82.
Badger Meter’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 6.7%. Shares of BMI have surged 80.5% in the past year.
The Zacks Consensus Estimate for Woodward’s fiscal 2023 EPS has increased 0.8% in the past 60 days to $3.61.
WWD’s long-term earnings growth rate is 13.5%. Shares of WWD have gained 20.2% in the past year.