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Sensata's (ST) Q1 Earnings and Revenues Surpass Estimates
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Sensata Technologies Holding plc (ST - Free Report) reported first-quarter 2024 adjusted earnings per share (EPS) of 89 cents compared with 92 cents reported a year ago. The bottom line surpassed the Zacks Consensus Estimate of 86 cents.
Quarterly revenues aggregated $1,006.7 million, up 0.9% year over year. The top line beat the consensus estimate by 1.9%. Organic growth of 2.3% was partly offset by unfavorable forex exchange movement.
The company continues to make strides in its electrification business. Management highlighted that in the past three years, it won more than $2.3 billion in new business, with $1.3 billion coming from the electrification business.
Sensata Technologies Holding N.V. Price, Consensus and EPS Surprise
In the first quarter of 2024, management transferred the Insight segment from the Performance Sensing segment to “Other” category.
Performance Sensing revenues (70.9% of total revenues) increased 6.8% year over year to $713.3 million. The topline performance gained from content growth across Automotive and Heavy vehicle off-road. This was partly offset by unfavorable foreign exchange movement. . Segmental operating income was $185.1 million compared with $169.1 million in the prior-year quarter.
Sensing Solutions revenues (25.6%) were $257.8 million, down 9% from the previous year. The year-over-year slowdown was primarily due to industrial down-cycle and unfavorable forex movement. This was partially balanced by growth in the Aerospace category.
Industrial business (which includes HVAC appliances and General Industrial) revenue growth remains under pressure owing to inventory destocking and the sluggish construction markets.
Other revenues (3.5%) were $35.6 million, down 24.3% from the prior-year period.
Other Details
Total operating income was $144.8 million compared with $148.8 million in the year-ago quarter.
Total operating expenses were $861.9 million, up from $849.3 million reported in the prior-year quarter, primarily due to higher cost of revenue and administrative expenses. Adjusted operating income was $188.5 million, down 2.3% from a year ago. The downward movement was mainly caused by unfavorable movements in foreign currency.
Adjusted EBITDA totaled $223.8 million in the quarter, up from $225.5 million in the previous year’s quarter.
Cash Flow & Liquidity
During the quarter, Sensata generated $106.5 million of net cash from operating activities compared with $96.9 million in the prior-year quarter. Free cash flow was $64.4 million compared with $60 million a year ago.
As of Mar 31, 2024, the company had $460.4 million in cash and cash equivalents and $3,375.5 million of net long-term debt compared with $508 million and $3,373.9 million, respectively, as of Dec 31, 2023. In the reported quarter, Sensata returned $28.1 million to shareholders via a quarterly dividend of $18.1 million and repurchased shares worth $10.1 million.
Guidance
Sensata provided guidance for the second quarter of 2024. For the quarter, the company projects revenues in the band of $1,025-$1,055 million, indicating a decline of 3-1%. Adjusted operating income is expected to be $192-$202 million, indicating a year-over-year decline of 7% to 2%.
Adjusted EPS is estimated to be 89-95 cents, suggesting a decline of 8-2%. Adjusted net income is anticipated in the $134-$144 million range, indicating a decrease of 10% to 4%.
Arista Networks, Inc. (ANET - Free Report) is slated to announce first-quarter 2024 results on May 7, after the market close. The stock, sporting a Zacks Rank #1 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 17.5% and delivered an earnings surprise of 13.3%, on average, in the trailing four quarters.
Airgain, Inc. (AIRG - Free Report) is slated to report first-quarter 2024 results on May 8, after the closing bell. It currently carries a Zacks Rank #2 (Buy). It has a long-term earnings growth expectation of 35%.
Headquartered in San Diego, CA, Airgain offers integrated wireless solutions in the form of antenna products. These products are equipped to solve critical connectivity needs in both the design process and the operating environment across the enterprise, automotive and consumer markets. Ideal for original equipment and design manufacturers, vertical markets, chipset vendors, service providers, value-added resellers and software developers worldwide, the customizable antennas from Airgain serve both indoor and outdoor connectivity issues.
Turtle Beach Corporation (HEAR - Free Report) is slated to report first-quarter 2024 results on May 7, after the closing bell. It develops and markets gaming headset solutions for various platforms, including video game and entertainment consoles, handheld consoles, personal computers, tablets and mobile devices under the Turtle Beach brand. It has a Zacks Rank #2.
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Sensata's (ST) Q1 Earnings and Revenues Surpass Estimates
Sensata Technologies Holding plc (ST - Free Report) reported first-quarter 2024 adjusted earnings per share (EPS) of 89 cents compared with 92 cents reported a year ago. The bottom line surpassed the Zacks Consensus Estimate of 86 cents.
Quarterly revenues aggregated $1,006.7 million, up 0.9% year over year. The top line beat the consensus estimate by 1.9%. Organic growth of 2.3% was partly offset by unfavorable forex exchange movement.
The company continues to make strides in its electrification business. Management highlighted that in the past three years, it won more than $2.3 billion in new business, with $1.3 billion coming from the electrification business.
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
In the first quarter of 2024, management transferred the Insight segment from the Performance Sensing segment to “Other” category.
Performance Sensing revenues (70.9% of total revenues) increased 6.8% year over year to $713.3 million. The topline performance gained from content growth across Automotive and Heavy vehicle off-road. This was partly offset by unfavorable foreign exchange movement. . Segmental operating income was $185.1 million compared with $169.1 million in the prior-year quarter.
Sensing Solutions revenues (25.6%) were $257.8 million, down 9% from the previous year. The year-over-year slowdown was primarily due to industrial down-cycle and unfavorable forex movement. This was partially balanced by growth in the Aerospace category.
Industrial business (which includes HVAC appliances and General Industrial) revenue growth remains under pressure owing to inventory destocking and the sluggish construction markets.
Other revenues (3.5%) were $35.6 million, down 24.3% from the prior-year period.
Other Details
Total operating income was $144.8 million compared with $148.8 million in the year-ago quarter.
Total operating expenses were $861.9 million, up from $849.3 million reported in the prior-year quarter, primarily due to higher cost of revenue and administrative expenses. Adjusted operating income was $188.5 million, down 2.3% from a year ago. The downward movement was mainly caused by unfavorable movements in foreign currency.
Adjusted EBITDA totaled $223.8 million in the quarter, up from $225.5 million in the previous year’s quarter.
Cash Flow & Liquidity
During the quarter, Sensata generated $106.5 million of net cash from operating activities compared with $96.9 million in the prior-year quarter. Free cash flow was $64.4 million compared with $60 million a year ago.
As of Mar 31, 2024, the company had $460.4 million in cash and cash equivalents and $3,375.5 million of net long-term debt compared with $508 million and $3,373.9 million, respectively, as of Dec 31, 2023.
In the reported quarter, Sensata returned $28.1 million to shareholders via a quarterly dividend of $18.1 million and repurchased shares worth $10.1 million.
Guidance
Sensata provided guidance for the second quarter of 2024. For the quarter, the company projects revenues in the band of $1,025-$1,055 million, indicating a decline of 3-1%. Adjusted operating income is expected to be $192-$202 million, indicating a year-over-year decline of 7% to 2%.
Adjusted EPS is estimated to be 89-95 cents, suggesting a decline of 8-2%. Adjusted net income is anticipated in the $134-$144 million range, indicating a decrease of 10% to 4%.
Zacks Rank
Sensata currently has a Zacks Rank #4 (Sell)
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Arista Networks, Inc. (ANET - Free Report) is slated to announce first-quarter 2024 results on May 7, after the market close. The stock, sporting a Zacks Rank #1 at present, is likely to benefit from strong momentum and diversification across its top verticals and product lines. The company has a software-driven, data-centric approach to help customers build their cloud architecture and enhance their cloud experience. Arista has a long-term earnings growth expectation of 17.5% and delivered an earnings surprise of 13.3%, on average, in the trailing four quarters.
Airgain, Inc. (AIRG - Free Report) is slated to report first-quarter 2024 results on May 8, after the closing bell. It currently carries a Zacks Rank #2 (Buy). It has a long-term earnings growth expectation of 35%.
Headquartered in San Diego, CA, Airgain offers integrated wireless solutions in the form of antenna products. These products are equipped to solve critical connectivity needs in both the design process and the operating environment across the enterprise, automotive and consumer markets. Ideal for original equipment and design manufacturers, vertical markets, chipset vendors, service providers, value-added resellers and software developers worldwide, the customizable antennas from Airgain serve both indoor and outdoor connectivity issues.
Turtle Beach Corporation (HEAR - Free Report) is slated to report first-quarter 2024 results on May 7, after the closing bell. It develops and markets gaming headset solutions for various platforms, including video game and entertainment consoles, handheld consoles, personal computers, tablets and mobile devices under the Turtle Beach brand. It has a Zacks Rank #2.