Benzinga | Feb 2, 2021 07:05PM EST

Sensata Posts Upbeat Q4 Earnings, Issues Optimistic Guidance Led By Auto Market Recovery

* Sensata Technologies Holding PLC (NYSE: ST) reported year-on-year revenue growth of 7.1% to $906.5 million, beating estimates by $9.75 million in the fourth quarter of FY20.

* Organic revenue growth of 5.3%, supported by a 1.8% increase in currency, drove the growth rate.

* Operating income rose by 27.7% to $154.2 million, while EPS declined 4.5% to $0.85, exceeding consensus estimates by $0.07.

* Operating cash flow fell 9.6% to $559.8 million, and debt financing rose by 156% to $1.15 billion.

* "Beyond improvements in end markets, Sensata's growth outpaced the automotive market by 970 basis points and the heavy vehicle market by 990 basis points during the quarter," said Sensata CEO Jeff Cote.

* Sensata projects a 13$ to 18% revenue growth between $875 to $915 million in the first quarter of FY21, higher than the analyst consensus of $871.71 million. Net income growth estimates stand between 27% to 47% at $106 million to $122 million. Expected EPS growth lies between 26% to 45% at $0.67 to $0.77, compared to the analyst estimate of $0.74.

* Price action: Sensata shares closed 2.31% lower at $54.11 Tuesday.