Sensata's Q1 Earnings & Revenues Surpass Estimates, Down Y/Y

Sensata Technologies Holding plc ST reported first-quarter 2025 adjusted earnings per share (EPS) of 78 cents compared with 89 cents a year ago. However, the bottom line topped the Zacks Consensus Estimate by 8.3%.

Revenues for the quarter reached $911.3 million, down 9.5% from a year ago. The top-line contraction was attributable to divestment of $200 million in annualized revenues related to various low-margin, low-growth products and the sale of the Insights business in September 2024. However, the figure outperformed management’s expectations ($870-$890 million) and also beat the consensus estimate by 3.6%. Strength in Sensing Solutions cushioned the top-line performance. 

Following the announcement, shares of ST gained 4.6% in the pre-market trading today. In the past year, shares have lost 46.9% against the Instruments-Control industry’s decline of 7.9%. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)

Segmental Results of Sensata

Performance Sensing revenues (71.4% of total revenues) decreased 8.8% year over year to $650.4 million. The top line was affected by divested products and lower light vehicle production volume in key markets. Lower demand in heavy vehicle, construction and agricultural segments also acted as a headwind. 

Segmental adjusted operating income was $142.9 million compared with $169 million in the prior-year quarter. 

Sensing Solutions’ revenues (28.6%) were $260.8 million, up 1.2% year over year. The performance was driven by stability across industrials and aerospace, and higher demand for A2L gas leak detection sensing products. 

Sensata Technologies Holding N.V. Price, Consensus and EPS Surprise

Sensata Technologies Holding N.V. price-consensus-eps-surprise-chart | Sensata Technologies Holding N.V. Quote

Segmental adjusted operating income was $76.1 million compared with $72.3 million in the prior-year quarter.

Other Details of Sensata's Q1

Adjusted operating income was $166.5 million compared with $188.8 million in the year-ago quarter. Adjusted operating margin contracted 40 basis points to 18.3%.

Adjusted EBITDA totaled $200.2 million in the quarter, down from $223.2 million in the previous year’s quarter.

Total operating expenses were $789.1 million, down 8.5% year over year.

ST’s Cash Flow & Liquidity

In the quarter under discussion, Sensata generated $119.2 million of net cash from operating activities compared with $106.5 million in the prior-year quarter. Free cash flow was $86.6 million compared with $64.4 million a year ago.

As of March 31, 2025, the company had $588.1 million in cash and cash equivalents and $3,177.3 million of net long-term debt compared with $593.7 million and $3,176.1 million, respectively, as of Dec. 31, 2024.

In the reported quarter, Sensata returned $17.9 million to its shareholders via quarterly dividends and repurchased shares worth $100.5 million.

Sensata’s Provides Q2 Outlook

For the second quarter, the company projects revenues in the band of $910-$940 million, indicating an increase of 0-3% sequentially. This includes approximately $20 million related to expected tariff recovery from customers. 

Adjusted operating income is expected to be $169-$177 million, implying a sequential increase of 1% to 6%.

On a sequential basis, adjusted EPS is estimated to be 80-86 cents, implying an improvement of 3-10%. Adjusted net income is anticipated in the $117-$125 million range, indicating an increase of 0% to 7%.

ST’s Zacks Rank

Sensata currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Performance of Other Companies in Tech Space

Badger Meter, Inc. BMI reported earnings of $1.30 for the first quarter of 2025, which beat the Zacks Consensus Estimate by 20.4%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of 99 cents. Quarterly net sales of BMI were $222.2 million, up 13% from $196.3 million in the year-ago quarter, driven by higher utility water sales and the initial contribution from the SmartCover acquisition. The Zacks Consensus Estimate was pegged at $222 million.

In the past six months, shares of BMI have inched up 1.1%.

Watts Water Technologies, Inc. WTS reported first-quarter 2025 adjusted EPS of $2.37 compared with $2.33 in the prior-year quarter. The bottom line topped the Zacks Consensus Estimate by 11.8%. Watts Water’s quarterly net sales declined 2% year over year to $558 million. The top line surpassed the Zacks Consensus Estimate by 3.2%. Organic sales were down 2% year over year. Incremental acquisition sales in the Americas added $5 million, contributing 1% to the reported growth. 

In the past six months, shares of Watts Water have risen 10.9%.

Itron Inc. ITRI reported non-GAAP EPS of $1.52 for first-quarter 2025, which beat the Zacks Consensus Estimate by 16.9%. The company reported earnings of $1.24 per share in the prior-year quarter. Amid the ongoing tariff tensions and global trade volatility, Itron’s regional supply strategy supports the bottom line, with most U.S. products made locally and key parts imported tariff-free from Mexico. Revenues inched up 1% year over year to $607 million, backed by the catch-up of delayed sales in the first quarter of 2024. The Zacks Consensus Estimate was pegged at $614.3 million. The figure also missed management’s guidance ($610-$620 million) owing to weakness across the Device Solutions and Networked Solutions segments amid strength in the Outcomes unit.

In the past six months, shares of ITRI have lost 13.3%.

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