In This Article:
-
Revenue: $983 million for Q3 2024, down 2% from $1 billion in Q3 2023.
-
Adjusted Operating Income: $188 million, with a margin of 19.2%, up 20 basis points sequentially.
-
Adjusted Earnings Per Share: $0.86 in Q3 2024, compared to $0.91 in Q3 2023.
-
Non-Cash Goodwill Impairment Charge: $150 million related to Dynapower acquisition.
-
Loss on Sale of Insights Business: Approximately $110 million.
-
Product Life Cycle Management Charge: Approximately $58 million.
-
Tax Benefit: Discrete tax benefit of approximately $258 million from valuation allowance release.
-
Performance Sensing Revenue: Approximately $660 million, down 5% year-over-year.
-
Sensing Solutions Revenue: Approximately $274 million, flat year-over-year.
-
Net Leverage Ratio: 3 times trailing 12 months EBITDA as of September 30, 2024.
-
Free Cash Flow Conversion: 70% for the second consecutive quarter.
-
Return on Invested Capital: Increased to 9.9% in Q3 2024.
-
Q4 2024 Revenue Guidance: Expected to be in the range of $870 million to $900 million.
-
Q4 2024 Margin Guidance: Expected margin expansion of approximately 20 basis points to 19.4%.
Release Date: November 04, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Sensata Technologies Holding PLC (NYSE:ST) completed the sale of its insights business, which is expected to streamline operations and focus on core areas.
-
The company has initiated several operational improvement initiatives, including process streamlining and increased automation, to enhance efficiency.
-
Sensata's Sensing Solutions segment showed stabilization with a 2% sequential growth, driven by new product launches like the A2L leak detection sensor.
-
The Dynapower business gained approval for its new power conversion technology, which is expected to drive growth in hydrogen and renewable sectors.
-
Sensata Technologies Holding PLC (NYSE:ST) reported a third consecutive quarter of adjusted operating margin expansion, indicating improved financial performance.
Negative Points
-
The automotive and heavy vehicle off-road markets decreased by approximately 5% year-over-year, impacting Sensata's performance sensing segment.
-
The company faces headwinds in China due to local OEMs gaining market share, which affects Sensata's content per vehicle.
-
A non-cash goodwill impairment charge of $150 million was recorded due to project delays in the Dynapower business.
-
Sensata Technologies Holding PLC (NYSE:ST) anticipates further erosion in automotive and heavy vehicle markets in the fourth quarter.
-
The company recorded a loss of approximately $110 million from the sale of its insights business.