Sensata Technologies Q3 revenue beats, helped by termination payment
Overview
Industrial sensors maker's Q3 revenue rose 7.7% yr/yr, beating analyst expectations
Adjusted EPS for Q3 increased 27% yr/yr and beat analyst expectations
Company retired $32.6 mln of long-term debt in Q3
Outlook
Sensata expects Q4 revenue of $942 mln to $972 mln
Company sees Q4 adjusted EPS between $0.95 and $0.99
Guidance includes tariff costs based on trade policies as of October 26, 2026
Result Drivers
TERMINATION PAYMENT - Q3 revenue and adjusted EPS were boosted by a $24 mln termination payment from a customer after cancellation of an electric vehicle program
ORGANIC GROWTH - Sensata reported 6.8% organic revenue growth in Q3 compared to prior yr
SEGMENT CONTRIBUTIONS - Automotive, Industrials, and Aerospace segments all posted yr/yr revenue and operating income increases in Q3
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $1.004 bln | $971.97 mln (10 Analysts) |
Q3 Adjusted EPS | Beat | $1.13 | $0.96 (10 Analysts) |
Q3 EPS | $0.78 | ||
Q3 Adjusted operating income | Beat | $215.3 mln | $157.19 mln (5 Analysts) |
Q3 Free Cash Flow | $198.3 mln | ||
Q3 Operating income | $175.3 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electronic equipment & parts peer group is "buy"
Wall Street's median 12-month price target for Sensata Technologies Holding PLC is $53.00, about 30.3% above its October 26 closing price of $40.69
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 12 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)