Sensor manufacturer Sensata Technology (NYSE: ST) will be reporting earnings this Wednesday after the bell. Here’s what you need to know.
Sensata Technologies beat analysts’ revenue expectations last quarter, reporting revenues of $934.8 million, up 2.6% year on year. It was a satisfactory quarter for the company, with a beat of analysts’ EPS estimates and revenue guidance for next quarter meeting analysts’ expectations.
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 2.9% year on year, a reversal from the 8.9% 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 has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Sensata Technologies’s peers in the semiconductors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Texas Instruments delivered year-on-year revenue growth of 22.8%, beating analysts’ expectations by 3.8%, and Intel reported revenues up 25.4%, topping estimates by 11.7%. Texas Instruments traded down 3.1% following the results while Intel was also down 12.2%.
Read our full analysis of Texas Instruments’s results here and Intel’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). Unfortunately, semiconductors stocks have struggled in this environment as share prices are down 17.1% on average over the last month. Sensata Technologies is down 1.1% during the same time and is heading into earnings with an average analyst price target of $51.50 (compared to the current share price of $46.39).
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