Sensata Technologies Holding plc (NYSE:ST) Q1 2024 Earnings Call Transcript

Brian Roberts: I think you’re spot on. I mean, obviously, still within the range that we were talking about last quarter. So I would say this is kind of a minor — I wouldn’t call it a tweak peak, I think it’s still within the range. The 2 things that are really driving it, though, you hit them both. One is, we had modeled our expected foreign exchange to be relatively kind of net 0 or so in the back half of the year. Originally, it looks like we’re going to have about 40 to 50 basis points of margin headwind in the back half of the year, kind of consistent with what we’re expecting in Q2 right now. And then second, we were hoping that industrial destocking would kind of end this down cycle by midyear or so, and that was pretty consistent with I think all the commentary we were hearing at year-end as well as what we were seeing.

Certainly, it looks like that that’s going to linger a little bit longer. And so we’ve tried to take both of those things into consideration as we looked at the guidance range for full year ’24.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Brian Roberts for any closing remarks.

Brian Roberts: Thank you, Betsy, and thank you, everyone, for joining today’s call. I want to just say — I want to wish Jeff all the best for his retirement. He’s a great leader, mentor and friend. It’s been a privilege to work with them again these past 6 months and societal mission. I also look forward to seeing many of you at various investor events this quarter including the Oppenheimer Virtual Investor Conference on May 7, the TD Cowen Annual Technology, Media & Telecom Conference in New York on May 30 and the Bank of America Global Technology Conference in San Francisco on June 4. That concludes our first quarter 2024 earnings conference call. Operator, you may now end the call. Thanks, everyone.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.