Sensata(US:ST) ZACKS·2025-05-09 14:40Core Viewpoint - Sensata Technologies Holding plc reported a decline in adjusted earnings per share (EPS) for Q1 2025, but exceeded consensus estimates, indicating resilience despite revenue challenges [1][2]. Financial Performance - Adjusted EPS for Q1 2025 was 78 cents, down from 89 cents year-over-year, but surpassed the Zacks Consensus Estimate by 8.3% [1]. - Revenues for the quarter were $911.3 million, a decrease of 9.5% from the previous year, primarily due to divestments and lower production volumes, yet it exceeded management's expectations and consensus estimates [2]. - Adjusted operating income was $166.5 million, down from $188.8 million year-over-year, with an adjusted operating margin of 18.3%, a contraction of 40 basis points [5]. Segment Performance - Performance Sensing revenues, which account for 71.4% of total revenues, decreased by 8.8% year-over-year to $650.4 million, impacted by divestments and lower demand in key markets [3]. - Sensing Solutions revenues, making up 28.6% of total revenues, increased by 1.2% year-over-year to $260.8 million, driven by stability in industrials and aerospace sectors [4]. Cash Flow and Shareholder Returns - The company generated $119.2 million in net cash from operating activities, an increase from $106.5 million year-over-year, with free cash flow rising to $86.6 million from $64.4 million [7]. - Sensata returned $17.9 million to shareholders through dividends and repurchased shares worth $100.5 million [8]. Outlook - For Q2 2025, Sensata projects revenues between $910 million and $940 million, indicating a sequential increase of 0-3%, and expects adjusted operating income to be between $169 million and $177 million [9]. - Adjusted EPS for Q2 is estimated to be between 80 and 86 cents, reflecting a potential improvement of 3-10% [10].