Sensata Technologies (NYSE: ST), a global industrial technology company and leading provider of sensors, sensor-rich solutions and electrical protection devices used in mission-critical systems that create valuable business insights for customers, today announced financial results for its first quarter ended March 31, 2024.
“We are pleased to report a solid start to 2024, with first quarter revenue and adjusted operating margins towards the high end of our guidance range”
“We are pleased to report a solid start to 2024, with first quarter revenue and adjusted operating margins towards the high end of our guidance range,” said Jeff Cote, CEO and President of Sensata. “We are the trusted electrification partner of choice as evidenced by more than $1.3 billion in electrification wins during the past three years and our safe and efficient capabilities remain a durable, proven, and profitable business driving value for our shareholders.”
Operating Results – First Quarter
Operating results for the first quarter of 2024 compared to the first quarter of 2023 are summarized below. These results include non-GAAP financial measures, each of which is defined and reconciled to the most directly comparable GAAP measure later in this press release.
Revenue:
- Revenue was $1,006.7 million, an increase of $8.5 million, or 0.9%, compared to $998.2 million in the first quarter of 2023.
- On a constant currency basis, revenue increased 2.3% as compared to the first quarter of 2023.
Operating income:
- Operating income was $144.8 million, or 14.4% of revenue, a decrease of $4.1 million, or 2.7%, compared to operating income of $148.8 million, or 14.9% of revenue, in the first quarter of 2023.
- Adjusted operating income was $188.5 million, or 18.7% of revenue ($197.6 million or 19.4% of revenue on a constant currency basis), a decrease of $4.4 million, or 2.3%, compared to adjusted operating income of $192.9 million, or 19.3% of revenue, in the first quarter of 2023.
Earnings per share:
- Earnings per share was $0.50, a decrease of $0.06, or 10.7%, compared to earnings per share of $0.56 in the first quarter of 2023.
- Adjusted earnings per share was $0.89, a decrease of $0.03, or 3.3% ($0.93 or an increase of 1.1% on a constant currency basis), compared to adjusted earnings per share of $0.92 in the first quarter of 2023.
Sensata generated $106.5 million of operating cash flow in the first quarter of 2024, compared to $96.9 million in the prior year period. Sensata’s free cash flow totaled $64.4 million in the first quarter of 2024, compared to $60.0 million in the prior year period.
During the first quarter of 2024, Sensata returned approximately $28.1 million to shareholders, including $18.1 million through its quarterly dividend of $0.12 per share paid on February 28, 2024, and approximately $10.1 million of shares repurchased.
Guidance
For the second quarter of 2024, Sensata expects revenue of $1,025 to $1,055 million and adjusted EPS of $0.89 to $0.95.
| Q2-2024 Guidance | |||
| $ in millions, except EPS | Q2-24 Guidance | Q2-23 | Y/Y Change |
| Revenue | $1,025 – $1,055 | $1,062.1 | (3%) – (1%) |
| organic growth | (2%) – 1% | ||
| Adjusted Operating Income | $192 – $202 | $205.7 | (7%) – (2%) |
| Adjusted Net Income | $134 – $144 | $149.2 | (10%) – (4%) |
| Adjusted EPS | $0.89 – $0.95 | $0.97 | (8%) – (2%) |
Versus the prior year period, Sensata expects that changes in foreign currency exchange rates will decrease revenue by approximately $13 million at the midpoint and decrease adjusted EPS by approximately $0.02 at the midpoint in the second quarter of 2024.
Conference Call and Webcast
Sensata will conduct a conference call today at 4:30 p.m. Eastern Time to discuss its first quarter 2024 financial results and its outlook for the second quarter of 2024. The dial-in numbers for the call are 1-844-784-1726 or 1-412-380-7411. Callers should reference the “Sensata Q1 2024 Financial Results Conference Call.” A live webcast of the conference call will also be available on the investor relations page of Sensata’s website at http://investors.sensata.com. Additionally, a replay of the call will be available until May 6, 2024. To access the replay, dial 1-877-344-7529 or 1-412-317-0088 and enter confirmation code: 2357389.
About Sensata Technologies
Sensata Technologies is a global industrial technology company striving to create a cleaner, more efficient, electrified and connected world. Through its broad portfolio of sensors, electrical protection components and sensor-rich solutions which create valuable business insights, Sensata helps its customers address increasingly complex engineering and operating performance requirements. With more than 21,000 employees and global operations in 16 countries, Sensata serves customers in the automotive, heavy vehicle & off-road, industrial, and aerospace markets.