Sensata Technologies Hosts Investor Day, Providing 2026 Financial Framework
27 Septiembre 2023 - 8:05AM
Business Wire
Company Reaffirms Third Quarter Guidance and
Provides Fourth Quarter Guidance
Implements Cost Reduction Plan
Announces New $500 Million Share Repurchase
Authorization
Sensata Technologies (NYSE: ST), a global industrial technology
company and leading provider of sensors, sensor-rich solutions and
electrical protection devices, is holding an Investor Event today
at which it will provide updates on its business and financial
targets for 2026.
Q3 2023 Reorganization Plan
Sensata has committed to a plan which includes voluntary and
involuntary reductions-in-force, site closures, and other cost
saving initiatives. The decision to execute the plan was made to
adjust the Company’s cost structure and business activities to
better align with the weaker market demand it has been experiencing
due to continued economic uncertainty in many of its end markets
and to take active measures to accelerate margin recovery.
The Company expects to record charges (including severance, site
closures, and other costs) in the third quarter of 2023 of $16 -
$20 million. The Company further expects that the actions taken in
the Q3 2023 Plan will result in annualized savings of personnel,
facilities, and other costs of approximately $40 - $50 million and
expects savings in the fourth quarter of 2023 to be approximately
$4 - $5 million.
Q3 and Q4 2023 Financial Guidance
Sensata is reaffirming financial guidance for the third quarter
of 2023, and is providing preliminary guidance for the fourth
quarter:
$ in millions, except EPS
Q3-23 GUIDANCE*
B/(W)
Q4-23 GUIDANCE*
B/(W)
Revenue
organic
$980 – $1,020
(4%) - 0% (3%) - 1%
$980 – $1,020
(3%) - 1% (3%) - 1%
Adj. Op Income
$183 – $199
(7%) - 1%
$186 – $202
(9%) - (1%)
Adj. Net Income
$129 – $143
(2%) - 9%
$136 – $150
(7%) - 3%
Adj. EPS
$0.84 – $0.94
(1%) - 11%
$0.89 – $0.99
(7%) - 3%
*Assumes minimal impact from UAW strike; potential for $7M - $8M
in lost weekly revenue depending on breadth.
Three Year Financial Framework
Sensata is also providing a financial framework for future
growth that includes preliminary financial guidance for fiscal year
2026:
$ in millions, except EPS
2023 GUIDANCE
CAGR
2026 GUIDANCE
Revenue
$4,020 - $4,100
7% - 9%
$5,000 - $5,300
Adj. Operating Margin
18.9% - 19.7%
12% - 15%
21% - 23%
Adj. EPS
$3.62 - $3.82
14% - 19%
$5.50 - $6.30
Share Repurchase Authorization
Sensata also announced that its Board of Directors has
authorized a new ordinary share repurchase program of $500 million.
This plan replaces Sensata’s prior ordinary share repurchase
program which had $167 million remaining authorization as of
September 22, 2023. Sensata’s shareholders have previously approved
the forms of share repurchase agreements and the potential broker
counterparties needed to execute the buyback program.
About Sensata Technologies
Sensata Technologies is a global industrial technology company
striving to create a cleaner, more efficient, electrified, and
connected world. Through its broad portfolio of sensors, electrical
protection components and sensor-rich solutions which create
valuable business insights, Sensata helps its customers address
increasingly complex engineering and operating performance
requirements. With more than 21,000 employees and global operations
in 16 countries, Sensata serves customers in the automotive, heavy
vehicle & off-road, industrial, and aerospace markets. Learn
more at www.sensata.com and follow us on LinkedIn, Facebook and
Twitter.
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version on businesswire.com: https://www.businesswire.com/news/home/20230927264032/en/
Investors: Jacob Sayer +1 (508) 236-1666
jsayer@sensata.com
Media: Alexia Taxiarchos +1 (508) 236-1761
ataxiarchos@sensata.com
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