Yahoo Finance Sensata (ST) Q4 Earnings & Revenues Top Estimates, Up Y/Y
Sensata Technologies Holding plc ST reported strong fourth-quarter 2022 results, with the top and bottom lines surpassing the Zacks Consensus Estimate.
On an adjusted basis, the company reported earnings of 96 cents per share compared with 87 cents reported in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 88 cents per share.
Quarterly revenues aggregated $1,014.7 million, up 8.6% year over year. The top line beat the consensus estimate by 1.8%. Acquisitions acted as tailwinds, but unfavorable currency changes reduced revenues by 3.6%.
In the past year, ST has lost 11.2% compared with the sub-industry’s decline of 5.8%.
Sensata Technologies Holding N.V. Price, Consensus and EPS Surprise
Sensata Technologies Holding N.V. price-consensus-eps-surprise-chart | Sensata Technologies Holding N.V. Quote
Segmental Results
Performance Sensing revenues (74.7% of the total revenues) increased 10.6% year over year to $757.7 million. The Automotive sector benefited from strong content growth, price realization and strong market growth partly offset by unfavorable foreign currency movement. Segment operating income was $196.9 million compared with $185.6 million reported in the prior-year quarter.
Sensing Solutions revenues (25.3% of total revenues) were $257 million, up 3% from the year-ago quarter. The year-over-year improvement was led by the latest electrification launches and revenues from acquisitions, partially offset by unfavorable foreign currency movement and softness in HVAC and appliance markets.
The segment’s operating income decreased to $74.4 million from $74.5 million, mainly due to the dilutive impact of acquisitions.
Other details
In the quarter under review, overall organic revenues were up 10%. The heavy vehicle off-road business witnessed a 0.7% decline in organic revenue growth. The automotive business reported organic revenue growth of 18.5%. The industrial business declined 0.5% organically. The aerospace business witnessed a 24.1% increase in organic revenues.
Total operating expenses were $862.3 million, up 9.9% compared with the prior-year quarter, primarily due to higher restructuring charges. Adjusted operating income was $204.3 million, up 3.4% compared with the year-ago quarter. The uptick was mainly caused by the favorable volumes, pricing and productivity improvements, partially offset by unfavorable movements in foreign currency, investments in Electrification and Insights and divestiture of our Qinex semiconductor test and thermal business.
Adjusted EBITDA totaled $244.5 million in the quarter, up from $228.7 million in the previous year’s quarter.
Cash Flow & Liquidity
In the quarter under review, Sensata generated $224.9 million of net cash from operating activities compared with $160.9 million in the prior year. Free cash flow was $185.2 million compared with $116.9 million a year ago.
As of Dec 31, 2022, the company had $1,225.5 million in cash and cash equivalents, with $3,958.9 million of net long-term debt compared with $1,103.9 million and $4,208.7 million, respectively, as of Sep 30, 2022.
In the quarter under review, Sensata repurchased shares worth $50.4 million.
Guidance
Sensata provided guidance for the first quarter of 2023. For the quarter, the company expects revenues of $950-$1,000 million, suggesting a decline of 3% to a rise of 3% year over year. Adjusted operating income is expected to be $182-198 million, indicating a year-over-year rise of 8% or remaining flat.
Adjusted earnings per share are estimated to be 81-91 cents, suggesting a rise of 4 to 17%. Adjusted net income is expected to be $125-139 million, suggesting a year-over-year rise of 1 to 13%.
Zacks Rank & Stocks to Consider
Sensata currently has a Zacks Rank #3 (Hold)
Some better-ranked stocks in the broader technology space are Arista Networks ANET, Jabil JBL and Super Micro Computer SMCI. While Jabil and Super Micro Computer sport a Zacks Rank #1 (Strong Buy), Arista Networks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Arista Networks 2022 earnings is pegged at $4.38 per share, rising 0.2 in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have increased 1.4% in the past year.
The Zacks Consensus Estimate for Jabil’s 2023 earnings is pegged at $8.37 per share, rising 2.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.
Jabil’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 8.8%. Shares of JBL have increased 26.4% in the past year.
The Zacks Consensus Estimate for Super Micro Computer’s fiscal 2023 earnings is pegged at $9.54 per share, up by 4.1% in the past 60 days.
Super Micro Computer’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 7.8%. Shares of SMCI are up 70.7% in the past year.
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