Stock Story -
Sensor manufacturer Sensata Technology (NYSE:ST) will be announcing earnings results tomorrow after the bell. Here's what to look for.
Sensata Technologies beat analysts' revenue expectations by 2.1% last quarter, reporting revenues of $1.01 billion, flat year on year. It was a decent quarter for the company, with a solid beat of analysts' EPS estimates but a decline in its gross margin.
Is Sensata Technologies a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Sensata Technologies's revenue to decline 2.1% year on year to $1.04 billion, a reversal from the 4.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.93 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Sensata Technologies has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 1.5% on average.
Looking at Sensata Technologies's peers in the analog semiconductors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Impinj (NASDAQ:PI) delivered year-on-year revenue growth of 19.2%, beating analysts' expectations by 5.2%, and Texas Instruments (NASDAQ:TXN) reported a revenue decline of 15.6%, in line with consensus estimates. Impinj traded up 4.6% following the results while Texas Instruments's stock price was unchanged.
Read the full analysis of Impinj's and Texas Instruments's results on StockStory.
Inflation fears have put pressure on growth stocks, and while some of the analog semiconductors stocks have fared somewhat better, they have not been spared, with share prices down 3.7% on average over the last month. Sensata Technologies is up 2.3% during the same time and is heading into earnings with an average analyst price target of $49.6 (compared to the current share price of $38.23).
