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Sensata (ST) Down 0.3% 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 0.3% 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? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Sensata’s Q2 Earnings Meet Estimates
Sensata 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.
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%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -7.97% due to these changes.
VGM Scores
At this time, Sensata has an 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 grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Sensata has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Sensata belongs to the Zacks Instruments - Control industry. Another stock from the same industry, Badger Meter (BMI - Free Report) , has gained 1.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Badger Meter reported revenues of $216.66 million in the last reported quarter, representing a year-over-year change of +23.2%. EPS of $1.12 for the same period compares with $0.76 a year ago.
Badger Meter is expected to post earnings of $1 per share for the current quarter, representing a year-over-year change of +13.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
Badger Meter has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
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Sensata (ST) Down 0.3% 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 0.3% 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? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Sensata’s Q2 Earnings Meet Estimates
Sensata 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.
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%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -7.97% due to these changes.
VGM Scores
At this time, Sensata has an 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 grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Sensata has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Sensata belongs to the Zacks Instruments - Control industry. Another stock from the same industry, Badger Meter (BMI - Free Report) , has gained 1.3% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Badger Meter reported revenues of $216.66 million in the last reported quarter, representing a year-over-year change of +23.2%. EPS of $1.12 for the same period compares with $0.76 a year ago.
Badger Meter is expected to post earnings of $1 per share for the current quarter, representing a year-over-year change of +13.6%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
Badger Meter has a Zacks Rank #1 (Strong Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.