Sensata Technologies has announced its financial results for its first quarter ended March 31, 2019.
Revenue in the first quarter of 2019 was $870.5 million, a decrease of $15.8 million, or 1.8%, from revenue of $886.3 million in the first quarter of 2018. Excluding a 1.2% negative effect from changes in foreign currency exchange rates and a 1.4% decline from the net effect of acquisitions and divestitures, Sensata reported organic revenue growth of 0.8% in the first quarter of 2019.
Net income in the first quarter of 2019 declined 6%, totaling $85.1 million, or 52 cents per diluted share, compared to net income of $90.5 million, or 52 cents per diluted share in the first quarter of 2018. Adjusted net income in the first quarter of 2019 declined 5.2%, totaling $139.3 million, or 85 cents per diluted share, compared to adjusted net income of $147 million, or 85 cents per diluted share in the first quarter of 2018.
Changes in foreign currency exchange rates increased Sensata’s adjusted operating margin by 70 basis points, and increased Sensata’s adjusted earnings per share by 3 cents in the first quarter of 2019 compared to the prior year period. The net effect of acquisitions and divestitures reduced Sensata’s adjusted earnings per share by 3 cents in the first quarter of 2019 compared to the prior year period.
“We delivered strong content growth and significantly outgrew our end markets in the first quarter of 2019,” said Martha Sullivan, CEO of Sensata. “Our underlying secular growth is being driven by legislative mandates and consumer demand for products that are cleaner, more efficient and more electrified. Additionally, we advanced our Electrification and Smart & Connected megatrend initiatives, including signing our first customer agreements for our Wireless Battery Management solution and our Wireless Gateway solution for on-road trucks and trailers. While our first quarter revenues were above our guidance, we expect production in the automotive and industrial end markets to be incrementally weaker for the remainder of 2019.”
Sensata repurchased 3 million ordinary shares for total consideration of approximately $150 million during the first quarter of 2019. The company currently has approximately $100 million remaining on its existing authorization to repurchase additional ordinary shares.
Guidance
For the full year 2019, the company anticipates revenue to be between $3.5 billion and $3.6 billion, representing year-over-year revenue growth of approximately 1 to 3 percent. Excluding changes in foreign currency exchange rates and the net effect of acquisitions and divestitures, Sensata expects to report organic revenue growth of approximately 1 to 4 percent for the full year 2019.
For the second quarter of 2019, Sensata anticipates revenue to be between $890 million and $914 million compared to $913.9 million in the second quarter of 2018, representing a revenue decline of between 3 and 0 percent. Excluding changes in foreign currency exchange rates and the net effect of acquisitions and divestitures, Sensata expects to report organic revenue decline of 1 percent to growth of 2 percent in the second quarter. In addition, the company expects adjusted net income to be between $150 million and $156 million and adjusted earnings per share to be between 92 cents and 96 cents in the second quarter of 2019, representing adjusted EPS between a decline of 1 percent and growth of 3 percent.