Sensata Technologies Holding plc ST reported fourth-quarter 2024 adjusted earnings per share (EPS) of 76 cents compared with 81 cents a year ago. The bottom line met the Zacks Consensus Estimate.
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Revenues for the quarter reached $907.7 million, down 8.5% from a year ago. The top-line contraction is attributable to product lifecycle transitions and the divestiture of Insights on Sept. 30, 2024. However, the figure outperformed management’s expectations ($870-$900 million), driven by stronger-than-anticipated auto production in North America and China. The top line also beat the consensus estimate by 2.4%.
In addition, the company’s board of directors approved a quarterly dividend of 12 cents per share, payable on Feb. 26, 2025, to shareholders on record as of Feb. 12.
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
Following the announcement, shares of ST gained 1.6% in the pre-market trading on Feb. 12. In the past year, shares have lost 20.2% against the Instruments-control industry’s growth of 10.5%.
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Segmental Results
Performance Sensing revenues (71.2% of total revenues) decreased 6.5% year over year to $646.7 million. Segmental adjusted operating income was $152 million compared with $170.6 million in the prior-year quarter.
Sensing Solutions revenues (28.8%) were $261 million, down 2.3% year over year. Segmental adjusted operating income was $79.4 million compared with $79.3 million in the prior-year quarter.
Other Details
Adjusted operating income was $175 million compared with $183.7 million in the year-ago quarter. Adjusted operating margin expanded 80 basis points to 19.3%.
Adjusted EBITDA totaled $208.3 million in the quarter, down from $218.2 million in the previous year’s quarter.
Total operating expenses were $833.9 million, down 30.2% year over year, primarily due to non-occurrence of goodwill impairment charges.
Cash Flow & Liquidity
In the quarter under discussion, Sensata generated $170.7 million of net cash from operating activities compared with $105.1 million in the prior-year quarter. Free cash flow was $138.9 million compared with $56.7 million a year ago.
As of Dec. 31, 2024, the company had $593.7 million in cash and cash equivalents and $3,176.1 million of net long-term debt compared with $506.2 million and $3,174.4 million, respectively, as of Sept. 30, 2024.
In the reported quarter, Sensata returned $17.9 million to shareholders via quarterly dividends and repurchased shares worth $21.6 million.
Outlook
Management anticipates full-year 2025 revenues to remain stable at roughly $3.6 billion, even after factoring in the $300 million in revenue exits in 2024. For the first quarter, it expects a return to normalized margin seasonality, with revenues gradually increasing in the second quarter, which is usually its strongest quarter. Sensata expects adjusted operating margins to reach 19% or higher in the second quarter and further improve in the second half of 2025.
For the first quarter, the company projects revenues in the band of $870-$890 million, indicating a decline of 4-2%. Adjusted operating income is expected to be $158-$164 million, implying a year-over-year decrease of 10% to 6%.
Adjusted EPS is estimated to be 70-73 cents, suggesting a decline of 8-4%. Adjusted net income is anticipated in the $105-$110 million range, indicating a decrease of 8% to 4%.
ST’s Zacks Rank
Sensata currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performance of Other Companies
BCE Inc. BCE reported fourth-quarter 2024 adjusted EPS of C$0.79 (56 cents) compared with C$0.76 in the prior-year quarter. The Zacks Consensus Estimate was pegged at 50 cents.
Shares of BCE have plunged 38.3% in the past year.
PTC Inc PTC reported first-quarter fiscal 2025 non-GAAP EPS of $1.10, beating the Zacks Consensus Estimate by 20.9%. The company reported non-GAAP EPS of $1.11 in the prior-year quarter.
In the past year, shares of PTC have declined 5.5%.
CDW Corporation CDW reported fourth-quarter 2024 non-GAAP EPS of $2.48, beating the Zacks Consensus Estimate of $2.33. However, the bottom line contracted 3.5% year over year.
In the past year, CDW shares have declined 19.5%.
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