Sensata (ST) Q2 Earnings Meet Estimates, Revenues Fall Y/Y

Core Viewpoint - Sensata Technologies reported a decline in quarterly revenues and adjusted earnings per share, reflecting challenges in the Sensing Solutions segment and overall market conditions [1][9]. Financial Performance - Quarterly revenues totaled $1,035.5 million, down 2.5% year over year, missing consensus estimates by 0.4% [1]. - Adjusted earnings per share (EPS) for the second quarter of 2024 was 93 cents, compared to 97 cents a year ago, matching the Zacks Consensus Estimate [9]. - Total operating income increased to $129.9 million from $118 million in the previous year [13]. Segmental Results - Sensing Solutions revenues, which account for 25.9% of total revenues, were $268.1 million, down 19% year over year due to destocking, a sluggish housing market, and unfavorable foreign exchange rates [2]. - Performance Sensing revenues, making up 69.9% of total revenues, increased by 4.4% year over year to $723.9 million, driven by strong performance in automotive and heavy vehicle sectors [11]. - Other revenues, representing 4.2% of total revenues, rose 16% year over year to $43.5 million [12]. Operating Expenses and Income - Total operating expenses decreased to $905.6 million from $944 million in the prior-year quarter [3]. - Adjusted operating income was $196.7 million, a decline of 4.4% from the previous year [3]. Cash Flow and Liquidity - As of June 30, 2024, the company had $1,033 million in cash and cash equivalents and $3,170.8 million in net long-term debt, compared to $460.4 million and $3,375.5 million, respectively, as of March 31, 2024 [4]. Guidance - For the third quarter of 2024, the company projects revenues between $970 million and $1,000 million, indicating a decline of 3% to 0% [17]. - Adjusted EPS is estimated to be between 82 and 88 cents, suggesting a decline of 10% to 3% [5].