Sensata Technologies (NYSE: ST) reported Q2 EPS of $0.93, in-line with the analyst estimate of $0.93. Revenue for the quarter came in at $913.9 million versus the consensus estimate of $907.1 million.

• Revenue in the second quarter of 2018 was $913.9 million, an increase of $74.0 million, or 8.8%, from revenue of $839.9 million in the second quarter of 2017.
• Excluding a 2.4% positive effect from changes in foreign exchange rates, Sensata reported organic revenuegrowth of 6.4% in the second quarter of 2018.
• Net income in the second quarter of 2018 grew 32.5%, totaling $105.3 million, which was 11.5% of revenue or $0.61 per diluted share, compared to net income of $79.5 million in the second quarter of 2017, which was 9.5% of revenue or $0.46 per diluted share.
• Adjusted net income in the second quarter of 2018 grew 15.7%, totaling $160.8 million, which was 17.6% of revenue, or $0.93 per diluted share, compared to adjusted net income of $139.0 million in the second quarter of 2017, which was 16.6% of revenue or $0.81 per diluted share.
• Adjusted EBIT grew 11.0%, totaling $210.4 million, or 23.0% of revenue, in the second quarter of 2018 compared to $189.6 million or 22.6% of revenue, in the second quarter of 2017.
• Changes in foreign currency exchange rates increased Sensata's revenues by $20.4 million, reduced Sensata's adjusted EBIT margin by 60 basis points, and had a negligible effect on Sensata's adjusted earnings per share in the second quarter of 2018 compared to the prior year period.

“We are growing faster than our markets as we continue to capture attractive secular growth opportunities in our industrial, automotive, and heavy vehicle & off road businesses,” said Martha Sullivan, President and Chief Executive Officer. “China remains our fastest growing region as a result of strong content growth and represents 15% of our revenues. We also continue to expand our margins and grew our adjusted EPS by 15% in the second quarter of 2018. Finally, we kicked off a $400 million share repurchase program that we expect to complete within the next six months, as part of our returns-driven capital deployment strategy."

Guidance

For the third quarter of 2018, Sensata anticipates revenue to be between $851 million and $875 million, compared to $819.1 million in the third quarter of 2017, representing organic revenue growth of 5 to 7 percent. Additionally, the Company expects adjusted net income to be between $150 and $156 million and adjusted earnings per share to be between $0.88 and $0.92 in the third quarter of 2018, representing EPS growth of 9 to14 percent.

Sensata anticipates revenue to be between $3.493 billion and $3.555 billion for full year 2018, which would represent organic revenue growth of between 5 and 7 percent, compared to its previous guidance of 3 to 5 percent. For full year 2018, Sensata expects adjusted EBIT to be between $821 and $837 million. Additionally, the Company expects adjusted net income to be between $618 million and $634 million and adjusted earnings per share to be between $3.63 and $3.73 for full year 2018, which would represent growth of 14 to 17 percent. Sensata expects that changes in foreign currency exchange rates will increase revenues by approximately 1 to 2 percent and will increase adjusted earnings per share by $0.05 to $0.09 for full year 2018.

Both the third quarter and full year 2018 guidance assumes the Company's divestiture of its valves business will close by the end of the third quarter 2018.

GUIDANCE:

Sensata Technologies sees FY2018 EPS of $3.63-$3.73, versus the consensus of $3.65. Sensata Technologies sees FY2018 revenue of $3.493-3.555 million, versus the consensus of $3.53 million.

For earnings history and earnings-related data on Sensata Technologies (ST) click here.