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Sensata Technologies Holding plc ST reported third-quarter 2024 adjusted earnings per share (EPS) of 86 cents compared with 91 cents a year ago. The bottom line matched the Zacks Consensus Estimate.
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Revenues for the quarter reached $982.8 million, down 1.8% from a year ago. The top line missed the consensus estimate by 0.2%.
Segmental Results
Performance Sensing revenues (67.1% of total revenues) fell 5.3% year over year to $659.7 million. The top line fell mainly due to local original equipment manufacturers (OEMs) gaining market share from multinational companies in China, partially offset by growth in the Heavy Vehicle & Off Road sector, particularly in North American and European on-road trucks. Segmental adjusted operating income was $161.9 million compared with $177.6 million in the prior-year quarter.
Sensata Technologies Holding N.V. Price and Consensus
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Sensing Solutions revenues (27.9%) were $274.4 million, down 0.3% from the previous year. The considerable year-over-year decrease was due to continued destocking and a sluggish housing construction market adversely impacting the industrial sector. However, the company anticipates future growth, particularly with its A2L leak detection sensor, which is gaining traction in a growing market. Moreover, Sensata's Dynapower business recently received approval for its fifth-generation compact power systems, providing dual-purpose performance for hydrogen production and fuel cells. Segmental adjusted operating income was $81 million compared with $80.7 million in the prior-year quarter.
Other revenues (5%) were $48.8 million, up 66.4% from the prior-year period.
Other Details
Total operating loss was $199.2 million against operating income of $116.3 million in the year-ago quarter. This loss is attributed to a $150 million good will impairment charge for the Dynapower business, $141 million in restructuring expenses linked to the sale of the Insights business and product exits and $27 million in costs tied to product lifecycle management.
Total operating expenses were $1182.1 million, up from $885 million reported in the prior-year quarter. Adjusted operating income was $188.4 million, declining 1.7% year over year.
Adjusted EBITDA totaled $217.6 million in the quarter, down from $228.3 million in the previous year’s quarter.
Cash Flow & Liquidity
During the quarter, Sensata generated $130.9 million of net cash from operating activities compared with $138.9 million in the prior-year quarter. Free cash flow was $91.3 million compared with $87.2 million a year ago.
As of Sept. 30, 2024, the company had $506.2 million in cash and cash equivalents and $3,174.4 of net long-term debt compared with $1,033 million and $3,170.8 million, respectively, as of June 30, 2024.