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Sensata (ST) Down 2.8% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for Sensata (ST - Free Report) . Shares have lost about 2.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Sensata due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Sensata Technologies Holding N.V. before we dive into how investors and analysts have reacted as of late.
Sensata's Q3 Earnings Surpass Estimates
Sensata reported third-quarter 2025 adjusted earnings per share (EPS) of 89 cents, flat year over year. However, the bottom line topped the Zacks Consensus Estimate by 4.7%.
Revenues for the quarter reached $932 million, down 5.2% from a year ago. The top-line contraction was attributable to earlier announced divestitures and product lifecycle optimization efforts. However, the figure outperformed management’s expectations ($900-$930 million) and beat the consensus estimate by 1.9%. Strength in Sensing Solutions cushioned the top-line performance.
Segmental Results
Performance Sensing revenues (70.5% of total revenues) decreased 0.4% year over year to $656.9 million. The top line was affected by lower on-road truck production, partially offset by market outgrowth in Auto and HVOR. Segmental adjusted operating income was $155.6 million compared with $145.7 million in the prior-year quarter.
Sensing Solutions’ revenues (29.5%) were $275 million, up 0.2% year over year. This was the third consecutive quarter of year-over-year growth, fueled by gains in A2L leak detection and the Aerospace segment. Segmental adjusted operating income was $85.1 million compared with $80.8 million in the prior-year quarter.
Other Details
Adjusted operating income was $179.6 million compared with $188.4 million in the year-ago quarter. Adjusted operating margin expanded 10 basis points to 19.3%.
Adjusted EBITDA totaled $212.1 million in the quarter, declining from $223 million in the previous-year quarter.
Total operating expenses were $1,054.9 million, down 10.8% year over year.
Cash Flow & Liquidity
In the quarter under discussion, Sensata generated $159.9 million of net cash from operating activities compared with $130.9 million in the prior-year quarter.
Free cash flow was $136.2 million compared with $91.3 million a year ago.
As of Sept. 30, 2025, the company had $791.3 million in cash and cash equivalents and $3,181.4 million of net long-term debt compared with $661.8 million and $3,178.5 million, respectively, as of June 30, 2025.
In the third quarter of 2025, Sensata returned approximately $17.5 million to shareholders through quarterly dividends of 12 cents per share paid on Aug. 27, 2025.
Q4 Outlook
For the fourth quarter, the company projects revenues in the band of $890-$920 million, indicating a decrease of 5-1%, sequentially. This includes approximately $12 million related to anticipated tariff recoveries from customers.
Adjusted operating income is expected to be $172-$179 million, implying a decline of 4% to no change, sequentially.
On a sequential basis, adjusted EPS is estimated to be 83-87 cents, suggesting a decrease of 7-2%, sequentially. Adjusted net income is anticipated in the $121-$127 million range, indicating stable performance to a decline of 7-2%, sequentially.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates review.
VGM Scores
Currently, Sensata has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Interestingly, Sensata has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Sensata (ST) Down 2.8% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for Sensata (ST - Free Report) . Shares have lost about 2.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Sensata due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Sensata Technologies Holding N.V. before we dive into how investors and analysts have reacted as of late.
Sensata's Q3 Earnings Surpass Estimates
Sensata reported third-quarter 2025 adjusted earnings per share (EPS) of 89 cents, flat year over year. However, the bottom line topped the Zacks Consensus Estimate by 4.7%.
Revenues for the quarter reached $932 million, down 5.2% from a year ago. The top-line contraction was attributable to earlier announced divestitures and product lifecycle optimization efforts. However, the figure outperformed management’s expectations ($900-$930 million) and beat the consensus estimate by 1.9%. Strength in Sensing Solutions cushioned the top-line performance.
Segmental Results
Performance Sensing revenues (70.5% of total revenues) decreased 0.4% year over year to $656.9 million. The top line was affected by lower on-road truck production, partially offset by market outgrowth in Auto and HVOR.
Segmental adjusted operating income was $155.6 million compared with $145.7 million in the prior-year quarter.
Sensing Solutions’ revenues (29.5%) were $275 million, up 0.2% year over year. This was the third consecutive quarter of year-over-year growth, fueled by gains in A2L leak detection and the Aerospace segment.
Segmental adjusted operating income was $85.1 million compared with $80.8 million in the prior-year quarter.
Other Details
Adjusted operating income was $179.6 million compared with $188.4 million in the year-ago quarter. Adjusted operating margin expanded 10 basis points to 19.3%.
Adjusted EBITDA totaled $212.1 million in the quarter, declining from $223 million in the previous-year quarter.
Total operating expenses were $1,054.9 million, down 10.8% year over year.
Cash Flow & Liquidity
In the quarter under discussion, Sensata generated $159.9 million of net cash from operating activities compared with $130.9 million in the prior-year quarter.
Free cash flow was $136.2 million compared with $91.3 million a year ago.
As of Sept. 30, 2025, the company had $791.3 million in cash and cash equivalents and $3,181.4 million of net long-term debt compared with $661.8 million and $3,178.5 million, respectively, as of June 30, 2025.
In the third quarter of 2025, Sensata returned approximately $17.5 million to shareholders through quarterly dividends of 12 cents per share paid on Aug. 27, 2025.
Q4 Outlook
For the fourth quarter, the company projects revenues in the band of $890-$920 million, indicating a decrease of 5-1%, sequentially. This includes approximately $12 million related to anticipated tariff recoveries from customers.
Adjusted operating income is expected to be $172-$179 million, implying a decline of 4% to no change, sequentially.
On a sequential basis, adjusted EPS is estimated to be 83-87 cents, suggesting a decrease of 7-2%, sequentially. Adjusted net income is anticipated in the $121-$127 million range, indicating stable performance to a decline of 7-2%, sequentially.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates review.
VGM Scores
Currently, Sensata has a average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. However, the stock was allocated a score of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. Interestingly, Sensata has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.