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Sensata (ST) Q2 Earnings Meet Estimates, Revenues Fall Y/Y
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Sensata Technologies Holding plc (ST - Free Report) reported second-quarter 2024 adjusted earnings per share (EPS) of 93 cents compared with 97 cents a year ago. The bottom line matched the Zacks Consensus Estimate.
Quarterly revenues aggregated $1,035.5 million, down 2.5% year over year. The top line missed the consensus estimate by 0.4%.
The company continues to make strides in its electrification business. It augmented its contactor product portfolio with the buyout of the remaining shares of its joint venture in China. Management highlighted that in the second quarter of 2024, the automotive business sector outgrew the market by more than 700 basis points.
Sensata Technologies Holding N.V. Price, Consensus and EPS Surprise
Performance Sensing revenues (69.9% of total revenues) increased 4.4% year over year to $723.9 million. The top line gained as both automotive and heavy vehicle and off-road businesses performed well across Europe, Japan and Korea. Segmental adjusted operating income was $177 million compared with $180.4 million in the prior-year quarter.
Sensing Solutions revenues (25.9%) were $268.1 million, down 19% from the previous year. The considerable year-over-year decrease was due to continued destocking, a sluggish housing construction market impacting the industrial sector, unfavorable foreign exchange rates and the absence of a one-time $26 million revenue boost from Dynapower business that benefited the second-quarter 2023 performance. Segmental adjusted operating income was $79.8 million compared with $94.2 million in the prior-year quarter.
Other revenues (4.2%) were $43.5 million, up 16% from the prior-year period.
Other Details
Total operating income was $129.9 million compared with $118 million in the year-ago quarter.
Total operating expenses were $905.6 million, down from $944 million reported in the prior-year quarter. Adjusted operating income was $196.7 million, declining 4.4%.
Adjusted EBITDA totaled $231.8 million in the quarter, down from $234.7 million in the previous year’s quarter.
Cash Flow & Liquidity
During the quarter, Sensata generated $143.5 million of net cash from operating activities compared with $115.8 million in the prior-year quarter. Free cash flow was $98.4 million compared with $68.2 million a year ago.
As of Jun 30, 2024, the company had $1,033 million in cash and cash equivalents and $3,170.8 million of net long-term debt compared with $460.4 million and $3,375.5 million, respectively, as of Mar 31, 2024.
During the second quarter, Sensata returned approximately $18.1 million to shareholders through its quarterly dividend of 12 cents per share paid on May 22, 2024.
Guidance
Sensata provided guidance for the third quarter of 2024. For the quarter, the company projects revenues in the band of $970-$1,000 million, indicating a decline of 3-0%. Adjusted operating income is expected to be $184-$194 million, implying a year-over-year increase of 1% to a decline of 4%.
Adjusted EPS is estimated to be 82-88 cents, suggesting a decline of 10-3%. Adjusted net income is anticipated in the $124-$134 million range, indicating a decrease of 10% to 3%.
The Zacks Consensus Estimate for Badger Meter’s 2024 EPS has increased 4.37% in the past 60 days to $4.06. BMI’s long-term earnings growth rate is 17.9%. The company recently reported results for second-quarter 2024, wherein EPS of $1.12 topped the Zacks Consensus Estimate by 14.3%. Quarterly net sales were $216.7 million, up 23% from $175.9 million in the year-ago quarter and surpassed the consensus mark by 7.86%.
Badger Meter’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 12.89%. BMI shares have risen 24.8% in the past year.
The Zacks Consensus Estimate for NVDA’s 2024 EPS has increased 1.5% in the past 60 days to $2.69. NVDA’s long-term earnings growth rate is 37.6%.
NVIDIA’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, delivering an average earnings surprise of 18.43%. Shares of NVDA have gained 138.8% in the past year.
The Zacks Consensus Estimate for ANET’s 2024 EPS has increased 0.3% in the past 60 days to $7.94. ANET’s long-term earnings growth rate is 16.1%. Arista is slated to announce second-quarter 2024 results on Jul 30, after market close.
Arista Networks’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, delivering an average earnings surprise of 15.39%. Shares of ANET have gained 106.7% in the past year.
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Sensata (ST) Q2 Earnings Meet Estimates, Revenues Fall Y/Y
Sensata Technologies Holding plc (ST - Free Report) reported second-quarter 2024 adjusted earnings per share (EPS) of 93 cents compared with 97 cents a year ago. The bottom line matched the Zacks Consensus Estimate.
Quarterly revenues aggregated $1,035.5 million, down 2.5% year over year. The top line missed the consensus estimate by 0.4%.
The company continues to make strides in its electrification business. It augmented its contactor product portfolio with the buyout of the remaining shares of its joint venture in China. Management highlighted that in the second quarter of 2024, the automotive business sector outgrew the market by more than 700 basis points.
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 (69.9% of total revenues) increased 4.4% year over year to $723.9 million. The top line gained as both automotive and heavy vehicle and off-road businesses performed well across Europe, Japan and Korea. Segmental adjusted operating income was $177 million compared with $180.4 million in the prior-year quarter.
Sensing Solutions revenues (25.9%) were $268.1 million, down 19% from the previous year. The considerable year-over-year decrease was due to continued destocking, a sluggish housing construction market impacting the industrial sector, unfavorable foreign exchange rates and the absence of a one-time $26 million revenue boost from Dynapower business that benefited the second-quarter 2023 performance. Segmental adjusted operating income was $79.8 million compared with $94.2 million in the prior-year quarter.
Other revenues (4.2%) were $43.5 million, up 16% from the prior-year period.
Other Details
Total operating income was $129.9 million compared with $118 million in the year-ago quarter.
Total operating expenses were $905.6 million, down from $944 million reported in the prior-year quarter. Adjusted operating income was $196.7 million, declining 4.4%.
Adjusted EBITDA totaled $231.8 million in the quarter, down from $234.7 million in the previous year’s quarter.
Cash Flow & Liquidity
During the quarter, Sensata generated $143.5 million of net cash from operating activities compared with $115.8 million in the prior-year quarter. Free cash flow was $98.4 million compared with $68.2 million a year ago.
As of Jun 30, 2024, the company had $1,033 million in cash and cash equivalents and $3,170.8 million of net long-term debt compared with $460.4 million and $3,375.5 million, respectively, as of Mar 31, 2024.
During the second quarter, Sensata returned approximately $18.1 million to shareholders through its quarterly dividend of 12 cents per share paid on May 22, 2024.
Guidance
Sensata provided guidance for the third quarter of 2024. For the quarter, the company projects revenues in the band of $970-$1,000 million, indicating a decline of 3-0%. Adjusted operating income is expected to be $184-$194 million, implying a year-over-year increase of 1% to a decline of 4%.
Adjusted EPS is estimated to be 82-88 cents, suggesting a decline of 10-3%. Adjusted net income is anticipated in the $124-$134 million range, indicating a decrease of 10% to 3%.
Zacks Rank and Stocks to Consider
Sensata currently carries a Zacks Rank #3 (Hold)
Some better-ranked stocks from the broader technology space are Badger Meter,Inc. (BMI - Free Report) , NVIDIA Corporation (NVDA - Free Report) and Arista Networks,Inc. (ANET - Free Report) . BMI presently sports a Zacks Rank #1 (Strong Buy), whereas NVDA & ANET carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Badger Meter’s 2024 EPS has increased 4.37% in the past 60 days to $4.06. BMI’s long-term earnings growth rate is 17.9%. The company recently reported results for second-quarter 2024, wherein EPS of $1.12 topped the Zacks Consensus Estimate by 14.3%. Quarterly net sales were $216.7 million, up 23% from $175.9 million in the year-ago quarter and surpassed the consensus mark by 7.86%.
Badger Meter’s earnings surpassed the Zacks Consensus Estimate in each of the last four quarters, delivering an average surprise of 12.89%. BMI shares have risen 24.8% in the past year.
The Zacks Consensus Estimate for NVDA’s 2024 EPS has increased 1.5% in the past 60 days to $2.69. NVDA’s long-term earnings growth rate is 37.6%.
NVIDIA’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, delivering an average earnings surprise of 18.43%. Shares of NVDA have gained 138.8% in the past year.
The Zacks Consensus Estimate for ANET’s 2024 EPS has increased 0.3% in the past 60 days to $7.94. ANET’s long-term earnings growth rate is 16.1%. Arista is slated to announce second-quarter 2024 results on Jul 30, after market close.
Arista Networks’ earnings beat the Zacks Consensus Estimate in each of the last four quarters, delivering an average earnings surprise of 15.39%. Shares of ANET have gained 106.7% in the past year.