Sensata's Q3 Earnings Meet Estimates, Revenues Decline Y/Y

Core Insights - Sensata Technologies Holding plc reported third-quarter 2024 adjusted earnings per share (EPS) of 86 cents, down from 91 cents a year ago, matching the Zacks Consensus Estimate [1] - Revenues for the quarter were $982.8 million, a decrease of 1.8% year over year, slightly missing the consensus estimate by 0.2% [1] Segmental Results - Performance Sensing revenues, accounting for 67.1% of total revenues, fell 5.3% year over year to $659.7 million, primarily due to local OEMs gaining market share in China, partially offset by growth in the Heavy Vehicle & Off Road sector [2] - Sensing Solutions revenues, making up 27.9% of total revenues, were $274.4 million, down 0.3% from the previous year, impacted by destocking and a sluggish housing construction market [3] - Other revenues, which represent 5% of total revenues, increased significantly by 66.4% year over year to $48.8 million [4] Financial Performance - Total operating loss was $199.2 million, compared to operating income of $116.3 million in the prior-year quarter, largely due to a $150 million goodwill impairment charge and restructuring expenses [5] - Total operating expenses rose to $1,182.1 million from $885 million in the prior-year quarter, while adjusted operating income declined by 1.7% year over year to $188.4 million [6] Cash Flow & Liquidity - The company generated $130.9 million of net cash from operating activities, down from $138.9 million in the prior-year quarter, with free cash flow increasing to $91.3 million from $87.2 million [7] - As of September 30, 2024, cash and cash equivalents stood at $506.2 million, while net long-term debt was $3,174.4 million [7] Shareholder Returns - Sensata returned approximately $55.4 million to shareholders, including $37.2 million on share repurchases and $18.1 million in dividends [8] Guidance - For the fourth quarter of 2024, the company projects revenues between $870 million and $900 million, indicating a decline of 11% to 8% year over year [9] - Adjusted EPS is estimated to be between 71 cents and 76 cents, suggesting a decline of 17% to 12% [9]