Sensor manufacturer Sensata Technology (NYSE: ST) will be announcing earnings results this Tuesday after the bell. Here’s what you need to know.
Sensata Technologies beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $943.4 million, down 8.9% year on year. It was a strong quarter for the company, with a significant improvement in its inventory levels and a beat of analysts’ EPS estimates.
Is Sensata Technologies a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Sensata Technologies’s revenue to decline 6.2% year on year to $922.1 million, a further deceleration from the 1.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.85 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sensata Technologies has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Sensata Technologies’s peers in the semiconductors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Texas Instruments delivered year-on-year revenue growth of 14.2%, beating analysts’ expectations by 1.9%, and Lam Research reported revenues up 27.7%, topping estimates by 1.6%. Texas Instruments traded down 5.7% following the results while Lam Research was up 4.3%.
Read our full analysis of Texas Instruments’s results here and Lam Research’s results here.
There has been positive sentiment among investors in the semiconductors segment, with share prices up 7.6% on average over the last month. Sensata Technologies is up 4.9% during the same time and is heading into earnings with an average analyst price target of $38.73 (compared to the current share price of $31.88).
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