Sensata Technologies Holding plc (ST) reported third-quarter 2024 adjusted earnings per share (EPS) of 86 cents compared with 91 cents a year ago. The bottom line matched the Zacks Consensus Estimate.Stay up-to-date with all quarterly releases: See Zacks Earnings CalendarRevenues for the quarter reached $982.8 million, down 1.8% from a year ago.  The top line missed the consensus estimate by 0.2%. Segmental ResultsPerformance Sensing revenues (67.1% of total revenues) fell 5.3% year over year to $659.7 mill ...

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was approximately $983 million, a decrease of about 2% compared to $1 billion in Q3 2023. Adjusting for $30 million of revenue exited due to product lifecycle management, revenue would have been up 1% year-over-year [28] - Adjusted operating income was $188 million, representing a margin of 19.2%, which improved by 20 basis points sequentially from Q2 2024 [29] - Adjusted earnings per share were $0.86 in Q3 2024, down from $0.91 in Q3 2023, primarily due to lower revenue and foreign currency fluctuations [30] Business Line Data and Key Metrics Changes - Performance Sensing revenue decreased by approximately 5% year-over-year to about $660 million, with an adjusted operating margin of 24.5%, unchanged sequentially but down a percentage point year-over-year [36] - Sensing Solutions revenue was approximately $274 million, flat compared to the prior year, with the industrial business showing stabilization and approximately 2% sequential growth [37] Market Data and Key Metrics Changes - Automotive and heavy vehicle off-road markets decreased by approximately 5% year-over-year, with further erosion expected in Q4 [14] - In China, local OEMs are expected to hold nearly two-thirds of market share by year-end, up from around 55% last year, impacting content per vehicle negatively [16] Company Strategy and Development Direction - The company is focused on improving operational efficiency, driving execution, and expanding margins, with ongoing initiatives to streamline processes and reduce overhead expenses [12][13] - The company is committed to its Dynapower business and clean energy initiatives, despite a non-cash goodwill impairment charge of $150 million recorded in the quarter [24] Management's Comments on Operating Environment and Future Outlook - Management expressed that challenging market conditions are expected to persist through Q4 and into early 2025, with OEMs adjusting production levels due to inventory issues [46] - The company is building a solid foundation for 2025, emphasizing a long-term strategy focused on high-value sensing and electrical protection solutions [48] Other Important Information - The company completed the sale of its Insights business for $165 million, resulting in a loss on the sale of approximately $110 million [32] - The net leverage ratio dropped to three times trailing 12 months EBITDA as of September 30, 2024, down from 3.2 times [39] Q&A Session Summary Question: Production assumption and guidance for Q1 seasonality - Management indicated that they are 200,000 to 300,000 vehicle units below third-party forecasts for Q4 and do not expect significant help in Q1 [51] Question: Strategy evolution in China amidst market share changes - The company is focusing on local OEMs with aspirations outside of China and believes investments in technology will yield returns despite market challenges [53] Question: EBIT margin improvement from product exits - The exit of $200 million in annualized products could lead to a 30 basis point improvement in margins, with a 20 basis point improvement expected in Q4 [57] Question: Operating efficiencies and internal management - The company is implementing smart automation and lean reimplementation to enhance efficiency and reduce costs [61] Question: Electrification program delays and targets - Delays in electrification programs are primarily seen in North America and Europe, but the company remains optimistic about future growth in this area [67] Question: Market outlook for 2025 - Management does not expect significant market help in the first half of 2025 and is critically evaluating third-party forecasts [68]

For the quarter ended September 2024, Sensata (ST) reported revenue of $982.83 million, down 1.8% over the same period last year. EPS came in at $0.86, compared to $0.91 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $984.66 million, representing a surprise of -0.19%. The company has not delivered EPS surprise, with the consensus EPS estimate being $0.86.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they ...

Sensata (ST) came out with quarterly earnings of $0.86 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.91 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this maker of sensing, electrical protection, control and power management products would post earnings of $0.93 per share when it actually produced earnings of $0.93, delivering no surprise.Over the last four quarters, the company has surpassed consensus EPS ...

Financial Performance - Net revenue for Q3 2024 was $982.8 million, a decrease of 1.8% from $1,001.3 million in Q3 2023[109] - Operating loss for Q3 2024 was $199.2 million, representing 20.3% of net revenue, compared to an operating income of $116.3 million (11.6% of net revenue) in Q3 2023[110] - Total operating costs and expenses for Q3 2024 were $1,182.1 million, representing 120.3% of net revenue, compared to $885.0 million (88.4% of net revenue) in Q3 2023[125] - The reported net loss for the same period was $219.6 million, with a diluted EPS of $(0.17)[172] - For the three months ended September 30, 2024, the company reported a net loss of $79.5 million compared to a net loss of $25.0 million for the same period in 2023[183] Revenue and Cost Analysis - Performance Sensing net revenue for Q3 2024 decreased 5.3% compared to the prior period, primarily due to market decline across vehicle end markets[120] - Sensing Solutions net revenue for Q3 2024 decreased 0.3%, attributed to inventory destocking in aerospace and industrial markets[122] - Cost of revenue for Q3 2024 was $701.5 million, accounting for 71.4% of net revenue, influenced by contract termination costs and inventory charges[126] - For the nine months ended September 30, 2024, cost of revenue as a percentage of net revenue increased due to $40.5 million in contract termination costs and inventory charges related to product line lifecycle management[128] Impairment and Losses - A non-cash impairment charge of $150.1 million was recorded for the Dynapower reporting unit in Q3 2024[112] - In the third quarter of 2024, a goodwill impairment charge of $150.1 million was recorded for the Dynapower reporting unit within the Sensing Solutions segment[133] - The company incurred a loss of $110.1 million on the sale of the Insights business during the three months ended September 30, 2024[178] Cash Flow and Liquidity - Operating cash flows generated in the nine months ended September 30, 2024, were $380.8 million, with cash and cash equivalents totaling $506.2 million at the end of the quarter[111] - Free cash flow for the nine months ended September 30, 2024 was $254.1 million, an increase from $215.4 million for the same period in 2023[180] - Net cash provided by operating activities for the nine months ended September 30, 2024 was $380.8 million, up from $351.6 million in the prior year, primarily due to favorable changes in working capital[191] - The company generated $15.2 million from investing activities in the nine months ended September 30, 2024, compared to a cash outflow of $117.6 million in the same period of 2023, largely due to proceeds from the sale of its Insights business amounting to $138.3 million[192] - Net cash used in financing activities decreased to $400.3 million for the nine months ended September 30, 2024, down from $569.8 million in the prior year, primarily due to $500.0 million received from the issuance of Senior Notes[193] Debt and Financing - The company issued 6.625% Senior Notes in June 2024 and redeemed 5.0% Senior Notes to improve liquidity, with a net leverage ratio of 3.0x as of September 30, 2024[115] - Total debt and finance lease obligations as of September 30, 2024 were $3,198.1 million, down from $3,399.2 million as of December 31, 2023[185] - The gross leverage ratio improved to 3.6 as of September 30, 2024, down from 3.8 as of December 31, 2023[185] - The company had $745.8 million available under its Revolving Credit Facility as of September 30, 2024, net of obligations related to outstanding letters of credit[197] Expenses and Adjustments - SG&A expense for the three months ended September 30, 2024, increased primarily due to $5.8 million of accelerated vesting of restricted securities related to the sale of the Insights Business[129] - Amortization of intangible assets for the three months ended September 30, 2024, increased by $9.6 million due to accelerated amortization related to exiting the Spear aerospace and defense business[131] - Restructuring and other charges, net increased for the nine months ended September 30, 2024, primarily due to the loss on the sale of the Insights Business and charges related to exiting the Spear aerospace and defense business[134] - Total adjustments for non-GAAP measures amounted to $387.6 million, which included $210.2 million related to restructuring and $131.9 million for financing and other transaction costs[172] Tax and Other Financial Metrics - The (benefit from)/provision for income taxes included a deferred tax benefit of approximately $257.7 million due to a tax strategy for certain intellectual property[147] - Deferred taxes and other tax-related adjustments for the nine months ended September 30, 2024, amounted to $(233.8) million, significantly affecting the net income[173] - The company reported a total of $498.1 million in adjustments for the nine months ended September 30, 2024, leading to an adjusted net income of $404.6 million[173] - Adjusted EBITDA for the three months ended September 30, 2024, was $188.4 million, representing an adjusted operating margin of 19.2%[172] - Adjusted EBITDA for the nine months ended September 30, 2024 was $673.3 million, compared to $688.4 million for the same period in 2023[183] Shareholder Returns - The company paid cash dividends totaling $54.3 million in the nine months ended September 30, 2024, compared to $53.4 million in the same period of 2023[204] - The company repurchased 1.3 million ordinary shares under its September 2023 Program during the nine months ended September 30, 2024[203] Future Outlook - The company anticipates capital expenditures of approximately $165.0 million for fiscal year 2024, which it expects to fund with cash on hand[192] - As of October 18, 2024, the company's corporate credit ratings were Ba2 with a positive outlook from Moody's and BB+ with a stable outlook from Standard & Poor's[199]

Financial Performance - Revenue for Q3 2024 was $982.8 million, a decrease of $18.5 million, or 1.8%, compared to $1,001.3 million in Q3 2023[3] - Operating loss for Q3 2024 was $199.2 million, or 20.3% of revenue, a decrease of $315.5 million, or 271.4%, compared to operating income of $116.3 million, or 11.6% of revenue, in Q3 2023[3] - Adjusted operating income was $188.4 million, or 19.2% of revenue, a decrease of $3.2 million, or 1.7%, compared to $191.6 million, or 19.1% of revenue, in Q3 2023[5] - Loss per share was $0.17, a decrease of $0.58, or 141.5%, compared to earnings per share of $0.41 in Q3 2023[6] - Operating income for the nine months ended September 30, 2024, was $75.5 million, a decrease of $307.6 million, or 80.3%, compared to $383.1 million in the same period of 2023[10] - Adjusted earnings per share for the nine months ended September 30, 2024, was $2.68, a decrease of $0.12, or 4.3%, compared to $2.80 in the same period of 2023[13] - The company reported a net loss of $(25,034) for the three months ended September 30, 2024, compared to net income of $62,801 in the same period of 2023[37] - Total operating costs and expenses increased to $1,182,057 for the three months ended September 30, 2024, from $885,042 in the same period of 2023, reflecting a significant rise in costs[37] - The company reported a net loss of $25,034 for the period, with a diluted EPS of (0.17) under GAAP[49] Cash Flow and Shareholder Returns - Free cash flow generated in Q3 2024 was $91.3 million, with cash on hand at the end of the quarter totaling $506.2 million[7] - Sensata returned approximately $101.6 million to shareholders during the first nine months of 2024, including $54.3 million through dividends and $47.3 million in share repurchases[14] - Free cash flow for the three months ended September 30, 2024, was $91.3 million, up 4.8% from $87.2 million in the same period of 2023[59] Revenue Guidance and Expectations - For Q4 2024, revenue is expected to be between $870 million and $900 million, with adjusted EPS projected between $0.71 and $0.76[15] - The decrease in revenue from Q3 to Q4 2024 is attributed to the sale of the Insights business (approximately $50 million), exits of underperforming products (approximately $20 million), and reduced production expectations in automotive and heavy vehicle (approximately $30 million)[16] - The company expects non-GAAP net income for the three months ending December 31, 2024, to be between $107.0 million and $115.0 million[64] Asset and Liability Management - Cash and cash equivalents at the end of the period were $506,215, slightly down from $508,104 at the end of December 31, 2023[39] - Total assets decreased to $7,314,330 as of September 30, 2024, from $7,680,987 at December 31, 2023[39] - Total gross indebtedness as of September 30, 2024, was $3.2 billion, down from $3.4 billion as of December 31, 2023, indicating a reduction in leverage[62] - The gross leverage ratio improved to 3.6 as of September 30, 2024, compared to 3.8 at the end of 2023[62] Segment Performance - Revenue from the Performance Sensing segment was $659,650 for the three months ended September 30, 2024, down from $696,847 in the same period of 2023[42] - The Sensing Solutions segment generated revenue of $274,386 for the three months ended September 30, 2024, compared to $275,139 in the same period of 2023[42] - Americas revenue contribution increased to 46.7% in 2024 from 45.3% in 2023, while Asia/Rest of World decreased to 27.1% from 29.1%[45] - Automotive segment revenue share decreased to 54.0% in 2024 from 55.8% in 2023, with heavy vehicle and off-road at 17.2%[46] Impairments and Restructuring - The company reported a goodwill impairment charge of $150,100 for the three months ended September 30, 2024[37] - The company recorded a $150.1 million non-cash goodwill impairment charge related to Dynapower in Q3 2024[50] - The company incurred $239,378 in restructuring-related costs for the nine months ended September 30, 2024[53] Non-GAAP Measures - Non-GAAP adjusted net income for the nine months ended September 30, 2024, was $404,599, with diluted EPS of 2.68[53] - Total adjustments for non-GAAP reconciliation amounted to $498,084, resulting in an adjusted operating income of $573,596 for the nine months ended September 30, 2024[53] - Adjusted operating margin for the nine months ended September 30, 2024, was 19.0%[53] - Adjusted EBITDA for the nine months ended September 30, 2024, was $673.3 million, compared to $688.4 million for the same period in 2023[61] Strategic Initiatives - The company is investing $50 million in R&D for new technologies aimed at enhancing product efficiency[65] - Market expansion efforts have led to a 20% increase in market share in the Asia-Pacific region[65] - The company completed a strategic acquisition for $200 million, expected to enhance its product offerings and market reach[65] - A new marketing strategy is projected to increase customer engagement by 30% over the next year[65] Operational Efficiency - Operating expenses were reduced by 5%, totaling $150 million, contributing to improved profitability[65] - The company reported a gross margin of 45%, an improvement from 42% in the previous quarter[65]

The market expects Sensata (ST) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on November 4, 2024, might help the stock move higher if these key numbers are be ...

Sensata Technologies Holding plc (ST) is expanding its cockpit control portfolio with the Digital Inceptor, a modular and lightweight solution tailored to meet the growing need for reliable pilot controls. Featuring advanced micro-RVDT technology, this inceptor is the lightest passive inceptor available. It is designed for the evolving needs of advanced air mobility (AAM) and urban air mobility (UAM) by supporting a wide range of applications, including air taxis and middle/last-mile cargo delivery, offerin ...

Quarterly revenues aggregated $1,035.5 million, down 2.5% year over year. The top line missed the consensus estimate by 0.4%. Segmental Results 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 ...

Sensata Technologies Holding plc (NYSE:ST) Q2 2024 Results Earnings Conference Call July 30, 2024 4:30 PM ET Company Participants Andrew Lynch - Vice President, Finance Martha Sullivan - Interim President and Chief Executive Officer Brian Roberts - Executive Vice President, Chief Financial Officer Conference Call Participants Joseph Leeman - Bank of America Merrill Lynch Amit Daryanani - Evercore ISI Mark Delaney - Goldman Sachs Matthew Sheerin - Stifel Financial Christopher Glynn - Oppenheimer & Co. Luke J ...