Sensata Technologies (ST) Tops Q3 EPS by 12c, Revenues Beat Offers 4Q Revenue Guidance Above Consensus, Provides 4Q EPS Outlook

Sensata Technologies (NYSE: ST) reported Q3 EPS of $0.66, $0.12 better than the analyst estimate of $0.54. Revenue for the quarter came in at $788.3 million versus the consensus estimate of $756.85 million.

Revenue:

• Revenue was $788.3 million, a decrease of $61.4 million, or 7.2%, compared to $849.7 million in the third quarter of 2019.
• Revenue declined 7.5% from the third quarter of 2019 on an organic basis, which excludes a 0.3% increase from foreign currency exchange rates versus the prior year period.
• Revenue increased 36.7% from the second quarter of 2020 on a reported basis.

Operating income:

• Operating income was $126.8 million (16.1% of revenue), a decrease of $19.3 million, or 13.2%, compared to operating income of $146.1 million (17.2% of revenue) in the third quarter of 2019, and an increase of $128.7 million compared to an operating loss of ($1.9) million ((0.3)% of revenue) in the second quarter of 2020.
• Adjusted operating income was $154.8 million (19.6% of revenue), a decrease of $44.7 million, or 22.4%, compared to adjusted operating income of $199.5 million (23.5% of revenue) in the third quarter of 2019. Adjusted operating income increased $79.8 million, or 106.5%, compared to adjusted operating income of $75.0 million (13.0% of revenue) in the second quarter of 2020.

Earnings per share:

• Earnings per share was $0.49, an increase of 11.4% compared to earnings per share of $0.44 in the third quarter of 2019, and an increase of $0.76 compared to a loss per share of ($0.27) in the second quarter of 2020.
• Adjusted earnings per share was $0.66, a decrease of 26.7% compared to adjusted earnings per share of $0.90 in the third quarter of 2019, and an increase of 266.7% compared to adjusted earnings per share of $0.18 in the second quarter of 2020.
• Changes in foreign currency exchange rates increased Sensata's adjusted earnings per share by $0.07 in the third quarter of 2020 compared to the prior year period.

"The rapid rebound of our business this quarter is a testament to the flexibility of Sensata's business model and the resiliency of our supply chain," said Jeff Cote, CEO and President of Sensata. "This sequential improvement demonstrates the healthy long-term prospects for Sensata both in our core sensing operations as well as in the emerging Megatrends of Electrification and Smart & Connected.

GUIDANCE:

Sensata Technologies sees Q4 2020 EPS of $0.64-$0.72, versus the consensus of $0.67. Sensata Technologies sees Q4 2020 revenue of $810-850 million, versus the consensus of $791.45 million.

For earnings history and earnings-related data on Sensata Technologies (ST) click here.

You May Also Be Interested In

• Synopsys upgraded at Piper Sandler on Intel foundry momentum, Apple opportunity
• Bristow Group to acquire Berry Aviation for $105 million
• Bernstein SocGen Group Reiterates Outperform Rating on Hermes International (RMS:FP) (HESAY) after cautious commentary