ST - Sensata Technologies stock dips after mixed Q3 report

Sensata Technologies ( NYSE: ST ) shares fell 4% on Tuesday after the electronic components company reported mixed third quarter results and gave an outlook that fell below analysts expectations.

The company generated adjusted earnings of $0.85 per share on revenue of $1.02B that grew 7.1% on an organic basis.

Adjusted operating margins improved sequentially to 19.4% as pricing improved in response to increased inflationary cost pressures.

For the fourth quarter of 2022, Sensata ( ST ) expects revenue in the range of $980M to $1.02B and adjusted EPS of $0.85 to $0.91. Q4 consensus for revenue is $1B and EPS is $0.89.

Analysts had mixed response to the report, with JPMorgan viewing Q4 outlook below its expectations. The investment bank said, "along with 3Q EPS coming lower than our estimates, the outlook for 4Q missed our revenue and EPS estimates, despite IHS continuing to get more and more positive about auto production outlook for the year led by greater headwinds in non-auto end-market exposures."

The company noted in the earnings call that it remains more conservative than IHS on automotive production estimates for the quarter because of extended macroeconomic risks.

Truist called it a "mixed" report as revenue and operating margins were slightly ahead of expectations, while earnings were in line and gross margins missed expectations. The outlook “approximates consensus," as per the brokerage.

Read the earnings call transcript here

For further details see: