Sensata Technologies (ST) To Report Earnings Tomorrow: Here Is What To Expect

Sensor manufacturer Sensata Technology (NYSE:ST) will be announcing earnings results tomorrow after market close. Here's what to look for.

Sensata Technologies beat analysts' revenue expectations by 1.4% last quarter, reporting revenues of $992.5 million, down 2.2% year on year. It was a weak quarter for the company, with a miss of analysts' EPS estimates. Revenue guidance for the next quarter also came in below analysts' expectations. 

Is Sensata Technologies a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Sensata Technologies's revenue to decline 1.2% year on year to $986.3 million, a reversal from the 2.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.85 per share.

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing four downward revisions over the last thirty days. Sensata Technologies has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 1.5% on average.

Looking at Sensata Technologies's peers in the semiconductors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Texas Instruments's revenues decreased 16.4% year on year, beating analysts' expectations by 1.4%, and Impinj reported a revenue decline of 10.6%, topping Wall Street's consensus estimates by 4.4%. Texas Instruments traded up 5.7% following the results while Impinj was also up 28.8%.

Read our full analysis of Texas Instruments's results here and Impinj's results here.

Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 2.9% over the last month. Sensata Technologies is down 4.1% during the same time and is heading into earnings with an average analyst price target of $43.2 (compared to share price of $34.98).

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.