Sensor maker Sensata Technology (NYSE:ST) will report earnings results tomorrow after the market closes. Here’s what to look for.
Sensata Technologies beat analysts’ revenue expectations by 1.4% last quarter, reporting revenue of $992.5 million, down 2.2% from the year-ago period. It was a weak quarter for the company as analysts missed earnings per share estimates. Revenue forecast for the next quarter also came in below analysts’ expectations.
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Analysts expect Sensata Technologies’ revenue to decline 1.2% year-on-year this quarter to $986.3 million, a reversal from the 2.3% growth recorded in the same quarter last year. Adjusted earnings are expected to be $0.85 per share.
Analysts covering the company have become increasingly pessimistic about the business’s prospects, with earnings forecasts revised down four times over the past thirty days. Sensata Technologies has missed Wall Street revenue estimates only once in the past two years, beating revenue expectations by an average of 1.5%.
Looking at Sensata Technologies’ competitors in the semiconductor space, several of them have already reported their first-quarter results, giving us a hint of what we can expect. Texas Instruments (NASDAQ:) revenue fell 16.4% year over year, beating analysts’ expectations by 1.4%, while Impinj reported a 10.6% decline in revenue, beating the Wall Street consensus by 4.4 %. Texas Instruments shares rose 5.7% at the end of trading, while Impinj shares also rose 28.8%.
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Read the full analysis of Texas Instruments and Impinj results on StockStory.
Many growth stock price multiples have yet to return to early 2021 highs, but the market was bullish at the end of 2023 as inflation cooled. The start of 2024 has been different: Mixed signals have led to market volatility, and while some semiconductor stocks have outperformed somewhat, they have not been spared, with the share price down 2.9% over the past month. Sensata Technologies shares are down 4.1% over the same period and are approaching earnings, with an average analyst price target of $43.2 (versus the share price of $34.98).