We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Sensata Technologies Holding plc (ST - Free Report) reported third-quarter 2023 adjusted earnings per share (EPS) of 91 cents compared with 85 cents reported a year ago. The bottom line surpassed the Zacks Consensus Estimate of 90 cents.
Quarterly revenues aggregated $1,001.3 million, down 1.7% year over year. The top line missed the consensus estimate by 0.2%. Unfavorable currency changes reduced revenues by 1%.
Segmental Results
Performance Sensing revenues (75.3% of total revenues) increased 2% year over year to $754 million. The Automotive sector benefited from content growth and price realization partly offset by unfavorable revenue mix and foreign currency movement. Segmental operating income was $186 million compared with $181.9 million in the prior-year quarter.
Sensing Solutions revenues (24.7%) were $247.3 million, down 11.3% from the previous year. The year-over-year downtick was caused by a weakness in industrial revenue growth, which offset increases in Aerospace revenues. Industrial revenue growth was affected by softness in HVAC, appliance, IT & telecom markets, and unfavorable forex volatility.
Sensata Technologies Holding N.V. Price, Consensus and EPS Surprise
The segment’s operating income decreased to $71.3 million from $80.3 million, mainly due to decline in industrial revenue growth.
Other Details
In the quarter under review, overall organic revenues were down 0.7%. The heavy vehicle off-road business witnessed a 3.8% decline in organic revenue growth. The automotive business reported organic revenue growth of 5.9%. The industrial business plunged 17.1% organically. The aerospace business witnessed a 28.7% jump in organic revenues.
Total operating expenses were $885.04 million, up 15.6% compared with the prior-year quarter, primarily due to higher restructuring charges. Adjusted operating income was $191.6 million, down 2.9% compared with the earlier year. The downward movement was mainly caused by lower revenues and unfavorable movements in foreign currency partly offset by higher productivity and favorable pricing.
Adjusted EBITDA totaled $228.3 million in the quarter, up from $224.2 million in the previous year.
Cash Flow & Liquidity
In the quarter under discussion, Sensata generated $138.9 million of net cash from operating activities compared with $93.8 million in the prior-year quarter. Free cash flow was $87.2 million compared with $57.5 million a year ago.
As of Sep 30, 2023, the company had $889.7 million in cash and cash equivalents and $3,771.8 million of net long-term debt compared with $857.3 million and $3,770.5 million, respectively, as of Jun 30, 2023.
In the reported quarter, Sensata returned $18.3 million to shareholders via quarterly dividends and repurchased shares worth $35.2 million.
Guidance
Sensata provided guidance for the fourth quarter of 2023. The company expects revenues in the range of $950-$1,000 million, suggesting a decline of 6-1% year over year. Adjusted operating income is projected to be between $176 million and 194 million, indicating a year-over-year dip of 14%-5%.
Adjusted EPS is estimated to be 79-89 cents, hinting at a tumble of 18%-7%. Adjusted net income is anticipated in the $120-136 million band, implying a year-over-year fall of 18-7%.
Zacks Rank
Sensata currently has a Zacks Rank #3 (Hold)
Stocks to Consider
Some better-ranked stocks worth consideration in the broader technology space are Asure Software (ASUR - Free Report) , Synopsys (SNPS - Free Report) and VMware . While Asure Software sports a Zacks Rank #1 (Strong Buy), Synopsys and VMware carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Asure Software’s 2023 earnings per share (EPS) has increased 5.9% in the past 60 days to 54 cents.
Asure Software’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 676.4%. Shares of ASUR have climbed 28.2% in the past year.
The Zacks Consensus Estimate for Synopsys’ fiscal 2023 EPS is unchanged in the past 60 days at $11.09. SNPS’ long-term earnings growth rate is 16.7%. Shares of SNPS have climbed 67% in the past year.
The Zacks Consensus Estimate for VMware’s fiscal 2024 EPS has improved 2.3% in the past 60 days to $7.23.
VMware’s earnings outpaced the Zacks Consensus Estimate in two of the last four quarters while missing twice. The average earnings surprise is 1.2%. Shares of VMW have jumped 30.1% in the past year
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Sensata (ST) Q3 Earnings Beat Estimates, Revenues Decline Y/Y
Sensata Technologies Holding plc (ST - Free Report) reported third-quarter 2023 adjusted earnings per share (EPS) of 91 cents compared with 85 cents reported a year ago. The bottom line surpassed the Zacks Consensus Estimate of 90 cents.
Quarterly revenues aggregated $1,001.3 million, down 1.7% year over year. The top line missed the consensus estimate by 0.2%. Unfavorable currency changes reduced revenues by 1%.
Segmental Results
Performance Sensing revenues (75.3% of total revenues) increased 2% year over year to $754 million. The Automotive sector benefited from content growth and price realization partly offset by unfavorable revenue mix and foreign currency movement. Segmental operating income was $186 million compared with $181.9 million in the prior-year quarter.
Sensing Solutions revenues (24.7%) were $247.3 million, down 11.3% from the previous year. The year-over-year downtick was caused by a weakness in industrial revenue growth, which offset increases in Aerospace revenues. Industrial revenue growth was affected by softness in HVAC, appliance, IT & telecom markets, and unfavorable forex volatility.
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
The segment’s operating income decreased to $71.3 million from $80.3 million, mainly due to decline in industrial revenue growth.
Other Details
In the quarter under review, overall organic revenues were down 0.7%. The heavy vehicle off-road business witnessed a 3.8% decline in organic revenue growth. The automotive business reported organic revenue growth of 5.9%. The industrial business plunged 17.1% organically. The aerospace business witnessed a 28.7% jump in organic revenues.
Total operating expenses were $885.04 million, up 15.6% compared with the prior-year quarter, primarily due to higher restructuring charges. Adjusted operating income was $191.6 million, down 2.9% compared with the earlier year. The downward movement was mainly caused by lower revenues and unfavorable movements in foreign currency partly offset by higher productivity and favorable pricing.
Adjusted EBITDA totaled $228.3 million in the quarter, up from $224.2 million in the previous year.
Cash Flow & Liquidity
In the quarter under discussion, Sensata generated $138.9 million of net cash from operating activities compared with $93.8 million in the prior-year quarter. Free cash flow was $87.2 million compared with $57.5 million a year ago.
As of Sep 30, 2023, the company had $889.7 million in cash and cash equivalents and $3,771.8 million of net long-term debt compared with $857.3 million and $3,770.5 million, respectively, as of Jun 30, 2023.
In the reported quarter, Sensata returned $18.3 million to shareholders via quarterly dividends and repurchased shares worth $35.2 million.
Guidance
Sensata provided guidance for the fourth quarter of 2023. The company expects revenues in the range of $950-$1,000 million, suggesting a decline of 6-1% year over year. Adjusted operating income is projected to be between $176 million and 194 million, indicating a year-over-year dip of 14%-5%.
Adjusted EPS is estimated to be 79-89 cents, hinting at a tumble of 18%-7%. Adjusted net income is anticipated in the $120-136 million band, implying a year-over-year fall of 18-7%.
Zacks Rank
Sensata currently has a Zacks Rank #3 (Hold)
Stocks to Consider
Some better-ranked stocks worth consideration in the broader technology space are Asure Software (ASUR - Free Report) , Synopsys (SNPS - Free Report) and VMware . While Asure Software sports a Zacks Rank #1 (Strong Buy), Synopsys and VMware carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Asure Software’s 2023 earnings per share (EPS) has increased 5.9% in the past 60 days to 54 cents.
Asure Software’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 676.4%. Shares of ASUR have climbed 28.2% in the past year.
The Zacks Consensus Estimate for Synopsys’ fiscal 2023 EPS is unchanged in the past 60 days at $11.09. SNPS’ long-term earnings growth rate is 16.7%. Shares of SNPS have climbed 67% in the past year.
The Zacks Consensus Estimate for VMware’s fiscal 2024 EPS has improved 2.3% in the past 60 days to $7.23.
VMware’s earnings outpaced the Zacks Consensus Estimate in two of the last four quarters while missing twice. The average earnings surprise is 1.2%. Shares of VMW have jumped 30.1% in the past year