Sensata Technologies Holding plc reported its financial results for the three and nine months ended September 30, 2024, revealing a decline in revenue and profitability compared to the same periods in 2023. For the third quarter, net revenue was $982.8 million, a decrease of 1.8% from $1,001.3 million in Q3 2023. For the nine months, net revenue totaled $3,025.1 million, down 1.2% from $3,061.6 million in the prior year. The decline was attributed to a decrease in the Performance Sensing segment, which saw a 5.3% drop in revenue for the quarter, primarily due to market declines across vehicle end markets.
Operating costs and expenses surged to $1,182.1 million in Q3 2024, compared to $885.0 million in the same period last year, leading to an operating loss of $199.2 million, a stark contrast to the operating income of $116.3 million reported in Q3 2023. The nine-month operating income also fell significantly to $75.5 million from $383.1 million in the previous year. The operating loss was largely driven by a $150.1 million goodwill impairment charge related to the Dynapower business, alongside restructuring costs and losses from the sale of the Insights Business.
Net loss for Q3 2024 was $25.0 million, compared to a net income of $62.8 million in Q3 2023. For the nine months, net income decreased to $122.7 million from $198.3 million in the prior year. The company also recognized a loss of approximately $110.1 million on the sale of the Insights Business, which was completed in August 2024 for a total purchase price of $165.0 million.
In terms of cash flow, Sensata reported net cash provided by operating activities of $380.8 million for the nine months, an increase from $351.6 million in the same period in 2023. The company’s cash and cash equivalents stood at $506.2 million as of September 30, 2024, slightly down from $508.1 million at the end of 2023.
Strategically, Sensata has undergone significant restructuring, including the exit from the aerospace and defense business of Spear Power Systems, which is expected to incur additional costs. The company also issued $500 million in senior notes in June 2024 to enhance liquidity and redeem existing debt. As of September 30, 2024, the net leverage ratio improved to 3.0x from 3.2x at the end of the previous fiscal year.
About Sensata Technologies Holding plc
About 10-Q Filings
A 10-Q form is an important financial report that public companies in the United States must submit every three months. It gives a clear picture of a company's financial health and recent performance.
Key points about the 10-Q:
- Frequency: Companies file it three times a year, covering the first three quarters. The fourth quarter is covered in a more comprehensive annual report.
-
Content: It includes:
- Financial statements showing the company's current financial position
- Updates from management on the performance and projections of the business
- Information about potential risks the company faces
- Details on how the company is run internally
- Deadline: Must be filed within 40 or 45 days after the quarter ends, depending on the size of the company.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.