Sensor manufacturer Sensata Technology (NYSE: ST) will be reporting results this Tuesday afternoon. Here’s what you need to know.
Sensata Technologies beat analysts’ revenue expectations last quarter, reporting revenues of $990.6 million, up 5% year on year. It was a very 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, the market is expecting Sensata Technologies’s revenue to grow 4.4% year on year, a reversal from the 5.2% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Sensata Technologies rarely misses Wall Street’s revenue estimates.
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 27.7%, beating analysts’ expectations by 2.6%, and Penguin Solutions reported revenues up 67.7%, topping estimates by 8.8%. Texas Instruments traded down 1.9% following the results while Penguin Solutions was up 13.1%.
Read our full analysis of Texas Instruments’s results here and Penguin Solutions’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the semiconductors stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 13.7% on average over the last month. Sensata Technologies is down 3.4% during the same time and is heading into earnings with an average analyst price target of $53.30 (compared to the current share price of $40.31).
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