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Sep 30, 2021

Sensata Q3 2021 Earnings Report

Sensata reported strong financial results driven by recovery across heavy vehicle, industrial, and aerospace markets, along with automotive revenue growth due to significant outgrowth and channel replenishment.

Key Takeaways

Sensata Technologies reported a 20.6% increase in revenue to $951.0 million and a 29.8% increase in adjusted operating income to $201.0 million for the third quarter of 2021. Adjusted EPS increased by 31.8% to $0.87.

Revenue increased by 20.6% compared to the third quarter of 2020, reaching $951.0 million.

Operating income increased by 27.2% to $161.3 million, representing 17.0% of revenue.

Adjusted operating income increased by 29.8% to $201.0 million, or 21.1% of revenue.

Adjusted earnings per share increased by 31.8% to $0.87.

Total Revenue
$951M
Previous year: $788M
+20.6%
EPS
$0.87
Previous year: $0.66
+31.8%
Operating Margin
17%
Previous year: 16.1%
+5.6%
Adjusted Operating Margin
21.1%
Previous year: 19.6%
+7.7%
Gross Profit
$322M
Previous year: $258M
+24.8%
Cash and Equivalents
$1.96B
Previous year: $1.61B
+21.6%
Free Cash Flow
$88.5M
Total Assets
$8.5B
Previous year: $7.56B
+12.5%

Sensata

Sensata

Sensata Revenue by Segment

Forward Guidance

For the fourth quarter of 2021, Sensata expects revenue of $895 to $925 million and adjusted EPS of $0.76 to $0.82.

Positive Outlook

  • Revenue between $895 million and $925 million.
  • Organic growth between (3)% and 0%.
  • Adjusted Operating Income between $180 million and $190 million.
  • Adjusted Net Income between $121 million and $131 million.
  • Adjusted EPS between $0.76 and $0.82.

Challenges Ahead

  • Revenue growth between (1)% and 2%.
  • Organic growth between (3)% and 0%.
  • Adjusted Operating Income growth between (8)% and (3)%.
  • Adjusted Net Income growth between (10)% and (3)%.
  • Adjusted EPS growth between (11)% and (4)%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income