Sensata Technologies Holding plc Just Recorded A 17% EPS Beat: Here's What Analysts Are Forecasting Next

A week ago, Sensata Technologies Holding plc (NYSE:ST) came out with a strong set of first-quarter numbers that could potentially lead to a re-rate of the stock. Sensata Technologies Holding beat earnings, with revenues hitting US$911m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 17%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following the recent earnings report, the consensus from 17 analysts covering Sensata Technologies Holding is for revenues of US$3.65b in 2025. This implies a perceptible 4.9% decline in revenue compared to the last 12 months. Per-share earnings are expected to jump 165% to US$2.22. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$3.61b and earnings per share (EPS) of US$2.01 in 2025. Although the revenue estimates have not really changed, we can see there's been a nice gain to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

View our latest analysis for Sensata Technologies Holding

The consensus price target was unchanged at US$32.20, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Sensata Technologies Holding, with the most bullish analyst valuing it at US$51.00 and the most bearish at US$23.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Sensata Technologies Holding's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 6.5% annualised decline to the end of 2025. That is a notable change from historical growth of 5.2% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 8.1% per year. It's pretty clear that Sensata Technologies Holding's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Sensata Technologies Holding following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Sensata Technologies Holding going out to 2027, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 2 warning signs for Sensata Technologies Holding you should be aware of, and 1 of them is a bit concerning.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.