Why Is Sensata (ST) Up 1.7% Since Last Earnings Report?

Core Viewpoint - Sensata's recent earnings report shows a mixed performance with adjusted EPS meeting estimates but revenues declining, leading to a downward revision in future guidance and estimates [2][10][11]. Financial Performance - For Q3 2024, Sensata reported adjusted EPS of 86 cents, down from 91 cents a year ago, matching the Zacks Consensus Estimate [2]. - Revenues for the quarter were $982.8 million, a decrease of 1.8% year-over-year, missing the consensus estimate by 0.2% [2]. - Total operating loss was $199.2 million, primarily due to a $150 million goodwill impairment charge and restructuring expenses [6]. Segmental Results - Performance Sensing revenues, accounting for 67.1% of total revenues, fell 5.3% year-over-year to $659.7 million, impacted by local OEMs gaining market share in China [3]. - Sensing Solutions revenues, making up 27.9% of total revenues, decreased by 0.3% to $274.4 million, affected by destocking and a sluggish housing market [4]. - Other revenues increased by 66.4% year-over-year to $48.8 million [5]. Cash Flow & Liquidity - Sensata generated $130.9 million in net cash from operating activities, down from $138.9 million a year ago, while free cash flow increased to $91.3 million from $87.2 million [8]. - As of September 30, 2024, the company had $506.2 million in cash and cash equivalents and $3,174.4 million in net long-term debt [8]. Guidance - For Q4 2024, Sensata projects revenues between $870 million and $900 million, indicating a decline of 11-8% year-over-year [11]. - Adjusted operating income is expected to be between $167.2 million and $175.2 million, reflecting a decrease of 11% to 7% [11]. Market Position - Sensata's estimates have trended downward, with a consensus estimate shift of -13.96% [12][13]. - The company currently holds a Zacks Rank 4 (Sell), indicating expectations of below-average returns in the coming months [15].