Sensor manufacturer Sensata Technology (NYSE:ST) will report earnings results after the market closes tomorrow. Here you can read what you should pay attention to.
Sensata Technologies beat analysts’ revenue expectations by 1.4% last quarter, reporting revenue of $992.5 million, down 2.2% year over year. It was a weak quarter for the company, as analysts’ profit expectations were missed. Revenue expectations for the next quarter also fell below analysts’ expectations.
Is Sensata Technologies a profitable buy or sell? Find out by reading the original article on StockStory, it’s free.
This quarter, analysts expect Sensata Technologies’ revenue to decline 1.2% year over year to $986.3 million, a reversal from the 2.3% increase recorded in the same quarter last year. Adjusted earnings are expected to be $0.85 per share.
Analysts covering the company have become increasingly negative on the company’s earnings trajectory, with revenue estimates undergoing four downward revisions in the last thirty days. Sensata Technologies has missed Wall Street revenue estimates just once over the past two years, beating revenue expectations by an average of 1.5%.
Looking at Sensata Technologies’ peers in the semiconductor segment, some have already reported their first quarter results, which gives us an idea of what to expect. Texas Instruments (NASDAQ:) revenue fell 16.4% year-over-year, beating analyst expectations by 1.4%, and Impinj reported a 10.6% decline in revenue, beating Wall Street’s consensus estimates by 4. 4% were exceeded. Texas Instruments rose 5.7% after the results, while Impinj also rose 28.8%.
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Read the full analysis of Texas Instruments and Impinj results on StockStory.
Valuation multiples for many growth stocks have not yet returned to their early 2021 highs, but the market was bullish in late 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility. While some semiconductor stocks have done slightly better, they haven’t been spared, with the stock price down 2.9% over the past month. Sensata Technologies is down 4.1% over the same period and is heading for gains with an average price target of $43.2 (compared to the share price of $34.98).
