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Mar 31, 2022

Sensata Q1 2022 Earnings Report

Sensata's Q1 2022 financial results were reported, demonstrating revenue above guidance due to strong outgrowth and acquisitions.

Key Takeaways

Sensata Technologies reported a 3.5% increase in revenue to $975.8 million in Q1 2022. The company's adjusted EPS was $0.78, and it initiated a quarterly dividend of $0.11 per share. They also announced the acquisition of Dynapower for $580 million.

Revenue increased by 3.5% to $975.8 million.

Adjusted earnings per share was $0.78.

Operating income was $125.9 million, or 12.9% of revenue.

Sensata repurchased approximately 1.1 million ordinary shares for $67.3 million.

Total Revenue
$976M
Previous year: $943M
+3.5%
EPS
$0.78
Previous year: $0.86
-9.3%
Operating Margin
12.9%
Previous year: 16.7%
-22.8%
Adjusted Operating Margin
18.7%
Previous year: 21%
-11.0%
Shares Repurchased
1.1M
Gross Profit
$319M
Previous year: $307M
+3.7%
Cash and Equivalents
$1.61B
Previous year: $1.89B
-15.1%
Free Cash Flow
$11.6M
Previous year: $77.3M
-84.9%
Total Assets
$8.61B
Previous year: $7.95B
+8.4%

Sensata

Sensata

Sensata Revenue by Segment

Forward Guidance

For the second quarter of 2022, Sensata expects revenue of $990 to $1,030 million and adjusted EPS of $0.79 to $0.87. For the fiscal year 2022, they are maintaining their annual financial guidance calling for revenue of $4,175 to $4,275 million and adjusted EPS of $3.80 to $4.06.

Positive Outlook

  • Revenue is expected to be between $990 million and $1,030 million for Q2 2022.
  • Adjusted EPS is projected to be between $0.79 and $0.87 for Q2 2022.
  • Annual revenue is expected to be between $4,175 million and $4,275 million.
  • Annual adjusted EPS is projected to be between $3.80 and $4.06.
  • Changes in foreign currency exchange rates will increase adjusted EPS by approximately $0.06 at the midpoint for fiscal year 2022.

Challenges Ahead

  • Changes in foreign currency exchange rates will decrease revenue by approximately $21 million at the midpoint for fiscal year 2022.
  • Changes in foreign currency exchange rates will decrease revenue by approximately $8 million at the midpoint in the second quarter of 2022.
  • Organic growth is projected to be (2%) - 2% for Q2 2022.
  • Adjusted Operating Income is projected to be $186 - $198 for Q2 2022.
  • Adjusted Net Income is projected to be $125 - $137 for Q2 2022.

Revenue & Expenses

Visualization of income flow from segment revenue to net income