Why Sensata Technologies (ST) Shares Are Falling Today

What Happened?

Shares of sensor manufacturer Sensata Technology (NYSE:ST) fell 4.7% in the afternoon session after the company reported second-quarter results that showed a year-over-year revenue decline and provided a weak forecast for the third quarter, which overshadowed an earnings beat. 

The industrial technology firm's revenue for the quarter was $943.4 million, an 8.9% decrease compared to the same period in the prior year, while adjusted earnings per share also fell to $0.87. Although these results surpassed analyst estimates, investor focus shifted to the company's forward-looking statements. Sensata attributed the yearly revenue drop to prior divestitures and product management actions. More critically, its guidance for the third quarter pointed to a sequential slowdown, with management citing weakening demand in the heavy vehicle market as a key factor. This disappointing outlook appeared to outweigh the quarterly beat, prompting the sell-off.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Sensata Technologies? Access our full analysis report here, it’s free.

What Is The Market Telling Us

Sensata Technologies’s shares are quite volatile and have had 16 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 3 months ago when the stock gained 15.8% on the news that the company reported impressive first quarter 2025 results which blew past analysts' EPS and adjusted operating income estimates. On the other hand, its inventory levels materially increased. Overall, we think this was a solid quarter with some key areas of upside.

Sensata Technologies is up 14.4% since the beginning of the year, but at $31.16 per share, it is still trading 20.1% below its 52-week high of $38.99 from July 2024. Investors who bought $1,000 worth of Sensata Technologies’s shares 5 years ago would now be looking at an investment worth $803.35.

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