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Jun 30, 2023

Sensata Q2 2023 Earnings Report

Sensata delivered record quarterly revenue and earnings per share, demonstrating strong financial performance

Key Takeaways

Sensata Technologies reported record revenue of $1,062.1 million for the second quarter of 2023, a 4.1% increase compared to the previous year. Adjusted earnings per share reached a record $0.97, a 16.9% increase. The company repaid its outstanding Term Loan and returned capital to shareholders through dividends and share repurchases.

Record quarterly revenue of $1,062.1 million, a 4.1% increase year-over-year.

Adjusted earnings per share reached a record $0.97, a 16.9% increase year-over-year.

Operating cash flow was $115.8 million, and free cash flow totaled $68.2 million.

The company repaid its variable rate Term Loan, returning approximately $18.3 million to shareholders through its quarterly dividend, and repurchased approximately $25.1 million of its shares.

Total Revenue
$1.06B
Previous year: $1.02B
+4.0%
EPS
$0.97
Previous year: $0.83
+16.9%
Operating Margin
11.1%
Adjusted Operating Margin
19.4%
Previous year: 19%
+2.1%
Shares Repurchased
25.1M
Previous year: 1.7M
+1376.5%
Gross Profit
$330M
Previous year: $334M
-1.2%
Cash and Equivalents
$857M
Previous year: $1.56B
-45.0%
Free Cash Flow
$68.2M
Previous year: $56.2M
+21.4%
Total Assets
$8.39B
Previous year: $8.61B
-2.5%

Sensata

Sensata

Sensata Revenue by Segment

Sensata Revenue by Geographic Location

Forward Guidance

For the third quarter of 2023, Sensata expects revenue of $980 to $1,020 million and adjusted EPS of $0.84 to $0.94.

Positive Outlook

  • Revenue guidance between $980 million and $1,020 million
  • Adjusted EPS guidance between $0.84 and $0.94

Challenges Ahead

  • Revenue is expected to decrease by approximately (4%) - 0%
  • Organic growth is expected to be (3%) - 1%
  • Adjusted operating income is expected to decrease by (7%) - 1%
  • Adjusted net income is expected to decrease by (2%) - 9%
  • Adjusted EPS is expected to decrease by (1%) - 11%

Revenue & Expenses

Visualization of income flow from segment revenue to net income