Sensata Technologies (NYSE: ST) reported Q4 EPS of $0.89, $0.02 better than the analyst estimate of $0.87. Revenue for the quarter came in at $846.7 million versus the consensus estimate of $830.55 million.

Operating results for the fourth quarter of 2019 compared to the fourth quarter of 2018 are summarized below. These results include non-GAAP financial measures, each of which is defined and reconciled to the most directly comparable GAAP measure later in this press release.

Revenue:

• Revenue was $846.7 million, a decrease of ($1.2) million, or (0.1%), compared to $847.9 million in the fourth quarter of 2018.
• Revenue declined (0.8%) on an organic basis, which excludes the effects of the following:
  • Foreign currency exchange rates: (0.3%) change versus the prior year period.
  • Acquisitions and divestitures, net: 1.0% change versus the prior year period.

Operating income:

• Operating income was $120.7 million (14.3% of revenue), a decrease of ($41.6) million, or (26%), compared to $162.4 million (19.1% of revenue) in the fourth quarter of 2018.
• Adjusted operating income was $192.5 million (22.7% of revenue), a decrease of ($17.6) million, or (8%), compared to $210.1 million (24.8% of revenue) in the fourth quarter of 2018.

Earnings per share:

• Earnings per share were $0.34, a decrease of (78%) compared to $1.54 per share in the fourth quarter of 2018.
• Adjusted earnings per share were $0.89, a decrease of (6%) compared to $0.95 per share in the fourth quarter of 2018.
• Changes in foreign currency exchange rates increased Sensata's adjusted earnings per share by $0.01 in the fourth quarter of 2019 compared to the prior year period. The net effect of acquisitions and divestitures had a negligible effect on the company's adjusted earnings per share during the fourth quarter of 2019.

"We exceeded our revenue and EPS guidance in the fourth quarter as a result of strong secular growth and better than expected performance in China and our Industrial business," said Martha Sullivan, Chief Executive Officer of Sensata. "While our end-markets were weak throughout 2019, we continued to generate attractive content growth, outgrowing our automotive end-market by 490 basis points and outgrowing our HVOR end-market by 1190 basis points in the fourth quarter of 2019."

GUIDANCE:

Sensata Technologies sees Q1 2020 EPS of $0.62-$0.66, versus the consensus of $0.83. Sensata Technologies sees Q1 2020 revenue of $793-817 million, versus the consensus of $846.51 million.

Sensata Technologies sees FY2020 EPS of $3.42-$3.58, versus the consensus of $3.67. Sensata Technologies sees FY2020 revenue of $3.399-3.499 billion, versus the consensus of $3.44 billion.

Paul Vasington, Chief Financial Officer of Sensata added, "Our first quarter 2020 guidance includes our best estimate of the business impact related to the recent CoronaVirus outbreak, which is quickly changing and highly uncertain. Furthermore, it is very difficult to predict when the government imposed quarantines will end, when travel restrictions will be lifted, when our plants will be fully operational, and the ultimate impact on end-market demand. That said, we estimate for both the first quarter and full year 2020 guidance a $40 million revenue and $20 million operating profit negative impact in the first quarter with minimal recovery over the balance of the year. The profit decline reflects the normal impact from expected lost revenue as well as underutilized and stranded costs related to this sudden event. We will continue to monitor the situation closely and we are doing everything possible to protect our employees and serve our customers."

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