Sensata Technologies Holding NV (NYSE:ST) Q1 2018 Earnings Conference Call - Preliminary Transcript

Apr 24, 2018 • 08:00 am ET


Sensata Technologies Holding NV (NYSE:ST) Q1 2018 Earnings Conference Call - Preliminary Transcript


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Good day, and welcome to the Sensata Technologies First Quarter 2018 Earnings Call. [Operator Instructions]. Please note this event is being recorded.

I would now like to turn the conference over to Mr. Joshua Young, Vice President, Investor Relations. Please go ahead.

Joshua Young

Thank you very much, Andrew, and good morning, everybody. I'd like to welcome you to Sensata's First Quarter 2018 Earnings Conference Call. Joining me on today's call are 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 can be downloaded from Sensata's newly redesigned Investor Relations website. We will also post a replay of today's webcast shortly after the conclusion of today's call.

Before we begin, I'd like to reference Sensata's safe harbor statement on Slide #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 SEC filings.On Slide 3, we show Sensata's GAAP results for the first quarter of 2018. We encourage you to review our GAAP financial statements in addition to today's presentation. Most of the subsequent information we will discuss during today's call will be related to non-GAAP financial measures. Reconciliation of our GAAP to our non-GAAP financial measures are included in our earnings release and in our webcast presentation. Additionally, the company provides details of its segment performance on Slides 10 and 11, which are the primary measures management uses to evaluate the business.

Martha will begin today's call with an overall business summary. Paul will then cover our financials for the first quarter of 2018 and provide guidance for the second quarter as well as update full year 2018 guidance. We will 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.

Martha Sullivan

Thank you, Joshua, and thanks to everyone for joining us this morning. Sensata had a great start to 2018. We extended our momentum from last year by generating a strong combination of top line organic revenue growth, margin expansion and earnings growth in the first quarter. Our 15.5% organic growth in adjusted earnings per share was one of the strongest quarters of organic EPS growth Sensata has delivered over the past few years. For the first quarter, we reported revenues of $886.3 million, representing organic revenue growth of 6.4%, exceeding the high end of our guidance. We expanded our adjusted EBIT margins by 110 basis points year-over-year and delivered adjusted EPS of $0.85, which was above the midpoint of our guidance.

On Slide 4, I list some of the key highlights of the