Sensor manufacturer Sensata Technology (NYSE:ST) will be reporting earnings tomorrow after the bell. Here’s what to look for.
Sensata Technologies met analysts’ revenue expectations last quarter, reporting revenues of $982.8 million, down 1.8% year on year. It was an ok quarter for the company, with a meaningful improvement in its inventory levels.
Is Sensata Technologies a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Sensata Technologies’s revenue to decline 10.9% year on year to $884.5 million, a further deceleration from the 2.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.75 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sensata Technologies has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Sensata Technologies’s peers in the analog semiconductors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Power Integrations delivered year-on-year revenue growth of 17.6%, meeting analysts’ expectations, and Texas Instruments reported a revenue decline of 1.7%, topping estimates by 3.3%. Power Integrations traded down 1.7% following the results while Texas Instruments was also down 7.5%.
Read our full analysis of Power Integrations’s results here and Texas Instruments’s results here.
Investors in the analog semiconductors segment have had steady hands going into earnings, with share prices flat over the last month. Sensata Technologies is down 5.5% during the same time and is heading into earnings with an average analyst price target of $39.10 (compared to the current share price of $26.10).
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