Yahoo Finance Earnings Update: Gentex Corporation (NASDAQ:GNTX) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts
As you might know, Gentex Corporation (NASDAQ:GNTX) recently reported its quarterly numbers. Results were roughly in line with estimates, with revenues of US$590m and statutory earnings per share of US$0.47. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Gentex
Taking into account the latest results, the consensus forecast from Gentex's ten analysts is for revenues of US$2.51b in 2024. This reflects a credible 7.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 14% to US$2.13. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.52b and earnings per share (EPS) of US$2.14 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of US$38.86, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Gentex, with the most bullish analyst valuing it at US$44.00 and the most bearish at US$35.00 per share. This is a very narrow spread of estimates, implying either that Gentex is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting Gentex's growth to accelerate, with the forecast 9.8% annualised growth to the end of 2024 ranking favourably alongside historical growth of 4.7% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 11% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Gentex is expected to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at US$38.86, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Gentex going out to 2026, and you can see them free on our platform here.
You can also see our analysis of Gentex's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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.
