Sensata Technologies Holding NV (NYSE:ST) Q3 2016 Earnings Conference Call - Preliminary Transcript

Oct 24, 2016 • 08:00 pm ET

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Sensata Technologies Holding NV (NYSE:ST) Q3 2016 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Good morning and welcome to the Sensata Technologies Third Quarter 2016 Earnings Conference Call. At this time, I would like to inform you that this call is being recorded. For opening remarks and introductions, I'd like to turn the call over to Joshua Young, Vice President of Investor Relations.

Mr. Young, you may begin.

Executive
Joshua S. Young

Thank you, Beth. Good morning and welcome to Sensata's Third Quarter 2016 Earnings Conference Call. At this time, I'd like to inform you that this call is being recorded. As we begin the call today, joining me on the call will be Martha Sullivan, Sensata's President and CEO; and Paul Vasington, Sensata's Chief Financial Officer. In addition to the earnings release we issued earlier today, we will be referencing a slide presentation during today's conference call. The PDF of this presentation could be downloaded from Sensata's Investor Relations website. We'll also post a replay of today's webcast shortly after conclusion of today's call.

Before we begin, I'd like to reference Sensata's Safe Harbor statement on slide number 2. During the course of this conference call, we will make forward-looking statements regarding future events or the financial performance of the company that involve risks and uncertainties. The company's actual results may differ materially from the projections described in such statements. Factors that might cause such differences include but are not limited to, those discussed in our Forms 10-Q and 10-K, as well as other subsequent filings with the SEC.

On slide number 3, I show Sensata's GAAP P&L for the third quarter of 2016. We encourage you to review our GAAP financial statements as part of today's presentation. Most of the subsequent information that we will discuss during today's call will be related to non-GAAP financial measures. A reconciliation for each of our GAAP to non-GAAP financial measures is included in our earnings release and in our webcast presentation. Martha will begin today's call with an overall business summary. Paul will then cover our financials for the third quarter 2016 in more detail and provide fourth quarter and full-year 2016 guidance. We'll then take your questions after our prepared remarks.

Now, I'd like to turn the call over to Sensata's President and CEO, Martha Sullivan.

Executive
Martha N. Sullivan

Thank you, Joshua. And thank you all for joining us this morning. I'd like to start by highlighting our financial performance for the quarter on slide 4. Sensata delivered strong margin expansion and organic EPS growth in the third quarter despite facing challenging markets. We reported quarterly revenues of $789.8 million, which represented growth of 8.6% year-over-year and was at the midpoint of the guidance we provided for the third quarter. We generated organic revenue growth of 1.7% in the third quarter of 2016 with both our Performance Sensing and Sensing Solutions businesses generating low-single-digit organic revenue growth. After a 5% organic revenue decline in the first half of 2016, I am pleased that Sensing Solutions resumed organic revenue growth this quarter.

We continue to deliver on our promise of expanding margins and