Sensata's Q4 Earnings Match Estimates, Revenues Decrease Y/Y

Core Viewpoint - Sensata Technologies Holding plc reported a decline in adjusted earnings per share and revenues for the fourth quarter of 2024, attributed to product lifecycle transitions and divestitures, but exceeded management's expectations due to stronger auto production in key markets [1][2]. Financial Performance - Adjusted EPS for Q4 2024 was 76 cents, down from 81 cents year-over-year, meeting the Zacks Consensus Estimate [1]. - Revenues for the quarter were $907.7 million, an 8.5% decrease from the previous year, but above management's guidance of$ 870- $900 million and 2.4% higher than consensus estimates [2]. - Adjusted operating income was$ 175 million, down from $183.7 million in the prior-year quarter, with an adjusted operating margin of 19.3%, an increase of 80 basis points [5]. Segment Performance - Performance Sensing revenues, which account for 71.2% of total revenues, decreased 6.5% year-over-year to$ 646.7 million, with adjusted operating income dropping to $152 million from$ 170.6 million [4]. - Sensing Solutions revenues, making up 28.8% of total revenues, were $261 million, down 2.3% year-over-year, with adjusted operating income slightly increasing to$ 79.4 million [4]. Cash Flow and Shareholder Returns - The company generated $170.7 million in net cash from operating activities, up from$ 105.1 million a year ago, with free cash flow increasing to $138.9 million from$ 56.7 million [6]. - Sensata returned $17.9 million to shareholders through dividends and repurchased shares worth$ 21.6 million [8]. Outlook - Management expects full-year 2025 revenues to stabilize around $3.6 billion, despite a$ 300 million revenue exit in 2024, with Q1 revenues projected between $870-$ 890 million, indicating a decline of 4-2% [9][10]. - Adjusted operating margins are anticipated to reach 19% or higher in Q2 2025, with gradual revenue increases expected in the second quarter [9].