What To Expect From Sensata Technologies’s (ST) Q3 Earnings

Petr Huřťák /
2023/10/30 3:01 am EDT

Sensor manufacturer Sensata Technology (NYSE:ST) will be reporting results. Here's what you need to know.

Last quarter Sensata Technologies reported revenues of $1.06 billion, up 4.07% year on year, beating analyst revenue expectations by 3.47%. It was a mixed quarter for the company, with a significant improvement in its inventory levels but underwhelming revenue guidance for the next quarter.

Is Sensata Technologies buy or sell heading into the earnings? Read our full analysis here.

This quarter analysts are expecting Sensata Technologies's revenue to decline 1.27% year on year to $1.01 billion, a further deceleration on the 7.07% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.90 per share.

Sensata Technologies Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. 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 1.86%.

Looking at Sensata Technologies's peers in the semiconductors segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Impinj's revenues decreased 4.78% year on year, beating analyst estimates by 0.46% and Texas Instruments reported revenue decline of 13.5% year on year, missing analyst estimates by 1.22%. Impinj traded up 20.7% on the results, Texas Instruments was down 4.2%.

Read our full analysis of Impinj's results here and Texas Instruments's results here.

The technology sell-off has been putting pressure on stocks and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 9.39% over the last month. Sensata Technologies is down 8.87% during the same time, and is heading into the earnings with analysts' average price target of $53.6, compared to share price of $34.3.

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.

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