On October 31, 2023, Sensata Technologies Holding PLC (ST, Financial) announced its financial results for the third quarter ended September 30, 2023. The company reported a decrease in revenue and operating income compared to the same period last year, but saw an increase in adjusted earnings per share.
Financial Performance
ST's Q3 2023 revenue was $1,001.3 million, a decrease of $17.0 million, or 1.7%, compared to $1,018.3 million in Q3 2022. The company's operating income was $116.3 million, a decrease of $136.6 million, or 54.0%, compared to the same period last year. However, adjusted earnings per share increased by 7.1% to $0.91.
Operating Results
ST's operating results for Q3 2023 compared to Q3 2022 showed a decrease in both revenue and operating income. The company's revenue decreased by 0.7% on an organic basis, which excludes a decrease of 1.0% from foreign currency exchange rates versus the prior year period. Operating income was $116.3 million, or 11.6% of revenue, a decrease of 54.0% compared to Q3 2022.
Financial Highlights
The company generated $138.9 million of operating cash flow in Q3 2023, compared to $93.8 million in the prior year period. ST's free cash flow totaled $87.2 million in Q3 2023 compared to $57.5 million in the prior year period. During Q3 2023, ST returned approximately $18.3 million to shareholders through its quarterly dividend of $0.12 per share paid on August 23, 2023, and repurchased shares valued at approximately $35.2 million.
Outlook
For the fourth quarter of 2023, ST expects revenue of $950 to $1,000 million and adjusted EPS of $0.79 to $0.89. The company also announced that Paul Vasington, EVP and CFO, will retire and Brian Roberts will begin serving as EVP and CFO of Sensata as of early November.
Despite the decrease in revenue and operating income, ST remains committed to its long-term growth goals, including scaling its Electrification business to $2 billion in revenue by 2026.
Explore the complete 8-K earnings release (here) from Sensata Technologies Holding PLC for further details.
