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Dec 31, 2023
Sensata Q4 2023 Earnings Report
Sensata's Q4 2023 financial performance declined compared to the previous year due to a goodwill impairment charge, while full-year revenue reached a record high.
Key Takeaways
Sensata Technologies reported a decrease in revenue and earnings per share for Q4 2023 compared to Q4 2022. Revenue was $992.5 million, a decrease of 2.2%. Loss per share was ($1.34), a decrease of $(2.08). The company's full-year revenue reached a record $4,054.1 million, an increase of 0.6% compared to the previous year.
Revenue decreased by 2.2% to $992.5 million compared to Q4 2022.
Operating loss was ($201.4) million, impacted by a $321.7 million non-cash goodwill impairment charge.
Loss per share was ($1.34), a decrease of $(2.08) compared to Q4 2022.
Adjusted earnings per share was $0.81, a decrease of ($0.15) compared to Q4 2022.
Sensata
Sensata
Sensata Revenue by Segment
Sensata Revenue by Geographic Location
Revenue by Segment
Performance Sensing Revenue
CapyFin.comSensing Solutions Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia/Rest of World Revenue
CapyFin.com Forward Guidance
Sensata anticipates relatively flat end markets year-over-year due to the current IHS automotive outlook, weakness in Europe and North America heavy vehicle and off-road production, and continued destocking in industrials. Revenue is expected to be flat to down slightly in the first and second quarters of 2024 before rebounding in the second half of the year. Adjusted operating margins are expected to be flat in the first quarter and then increase sequentially by approximately 20 – 30 basis points per quarter.
Positive Outlook
- New and ramping product launches driving growth in the second half of the year.
- Adjusted operating margins expected to increase sequentially by approximately 20 – 30 basis points per quarter after Q1.
- Electrification revenue grew by nearly 50% to approximately $700 million in 2023.
- Over $1.3 billion in electrification opportunities won over the last three years.
- Capital allocation strategy to reduce net leverage and return cash to shareholders is showing strong early returns.
Challenges Ahead
- End markets are anticipated to be relatively flat year over year.
- Weakness in Europe and North America heavy vehicle and off road production.
- Continued destocking in industrials.
- Revenue expected to be flat to down slightly in the first and second quarters of 2024.
- Changes in foreign currency exchange rates will decrease revenue by approximately ($7) million at the midpoint and decrease adjusted EPS by approximately ($0.05) at the midpoint in the first quarter of 2024.
Revenue & Expenses
Visualization of income flow from segment revenue to net income