Sensata Technologies (ST) Q2 Earnings: What To Expect

Kayode Omotosho /
2022/07/25 4:27 am EDT
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Sensor manufacturer Sensata Technology (NYSE:ST) will be reporting earnings tomorrow before market hours. Here's what you need to know.

Last quarter Sensata Technologies reported revenues of $975.7 million, up 3.52% year on year, beating analyst revenue expectations by 1.57%. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter and a slow revenue growth.

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

This quarter analysts are expecting Sensata Technologies's revenue to grow 1.27% year on year to $1 billion, slowing down from the 72.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.83 per share.

Sensata Technologies Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing six downward revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 2.42%.

Looking at Sensata Technologies's peers in the semiconductors segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Seagate Technology's revenues decreased 12.7% year on year, missing analyst estimates by 5.72%. Seagate Technology traded flat on the results. Read our full analysis of Seagate Technology's results here.

There has been positive sentiment among investors in the semiconductors segment, with the stocks up on average 5.69% over the last month. Sensata Technologies is up 1.79% during the same time, and is heading into the earnings with analyst price target of $59.2, compared to share price of $44.29.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.