SWINDON, United Kingdom - Sensata Technologies (NYSE: ST), a leader in industrial technology and sensor-rich solutions, has delivered a robust financial performance for the first quarter ended March 31, 2024.
Sensata's stock responded positively to the earnings release, with shares climbing 17.4%.
The company reported adjusted earnings per share (EPS) of $0.89, surpassing analyst expectations by $0.04. Revenue for the quarter reached $1.01 billion, exceeding the consensus estimate of $986.51 million and marking a 0.9% increase from the $998.2 million reported in the first quarter of the previous year.
CEO Jeff Cote expressed satisfaction with the company's strong start to the year, highlighting Sensata's role as a trusted partner in electrification, backed by over $1.3 billion in electrification wins over the past three years. The company's commitment to safe and efficient capabilities continues to drive shareholder value.
Despite the positive performance, Sensata experienced a slight decrease in operating income, which stood at $144.8 million or 14.4% of revenue, a 2.7% dip from the $148.8 million reported in the same quarter last year. Adjusted operating income also saw a marginal decline of 2.3% to $188.5 million, or 18.7% of revenue. This slight decrease is attributed to various factors, including foreign exchange rates and market conditions.
Looking ahead, Sensata anticipates revenue between $1.025 billion and $1.055 billion for the second quarter, with adjusted EPS expected to be in the range of $0.89 to $0.95. This guidance is generally in line with analyst expectations, which predict second-quarter revenue of $1.037 billion and EPS of $0.92. The company's projections account for potential foreign currency exchange rate impacts, which are estimated to reduce revenue by approximately $13 million and adjusted EPS by about $0.02 at the midpoint for the upcoming quarter.
In addition to the financial results, Sensata generated $106.5 million in operating cash flow and reported free cash flow of $64.4 million for the first quarter, both showing improvements from the prior year period. The company also returned approximately $28.1 million to shareholders through dividends and share repurchases.
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