Yahoo Finance Gentex (GNTX) Q1 Earnings Match Estimates, Increase Y/Y
Gentex Corporation’s GNTX first-quarter 2024 earnings per share (EPS) of 47 cents came in line with the Zacks Consensus Estimate and increased 12% year over year.
This Zeeland-based automotive products supplier reported net sales of $590.2 million, which missed the Zacks Consensus Estimate of $600 million but increased 7% from the year-ago period. The company recorded a gross margin of 34.3%, reflecting an increase of 260 basis points from the first quarter of 2023, due to lower raw material costs, higher sales, better pricing and manufacturing efficiencies.
Gentex Corporation Price, Consensus and EPS Surprise
Gentex Corporation price-consensus-eps-surprise-chart | Gentex Corporation Quote
Segmental Performance
The Automotive segment’s net sales — contributing the most to Gentex’s revenues — totaled $577.6 million in the first quarter, which was 7% higher than the $537.4 million reported in the year-ago quarter and missed our estimate of $582.4 million. In the reported quarter, auto-dimming mirror shipments in the North American market decreased 4% to 3,883,000 units. Shipments fell 1% year over year in the international markets to 8,588,000 units. Total shipments declined 2% to 12,471,000 units.
Other net sales, which include dimmable aircraft windows and fire protection products, decreased from the year-ago quarter’s $13.3 million to $12.6 million and missed our estimate of $17.6 million. Fire protection sales decreased $2.5 million from the year-ago quarter’s figure. Dimmable aircraft window sales increased $1.8 million from the year-ago quarter’s level.
Financial Tidbits
Total operating expenses rose 19% year over year to $72.9 million in first-quarter 2024. Engineering and R&D expenses increased to $42.2 million from $34.7 million. SG&A expenses rose to $30.7 million from $26.8 million recorded in the corresponding quarter of 2023.
GNTX paid a dividend of 12 cents per share in the quarter. It repurchased 1.2 million shares of its common stock at an average price of $35.84 per share. As of Mar 31, 2024, the company had nearly 14.7 million shares remaining for buyback, per its previously announced share repurchase plan. Gentex had cash and cash equivalents of about $249 million as of Mar 31, 2024.
2024 Guidance
The company has reaffirmed its previous guidance. Its 2024 net sales are estimated in the range of $2.45-$2.55 billion. The gross margin is projected in the band of 34-35%. Capital expenditure is anticipated between $225 million and $250 million. Operating expenses are estimated in the band of $295-$305 million.
Zacks Rank & Key Picks
GNTX currently carries a Zacks Rank #3 (Hold).
Some better-ranked players in the auto space are Geely Automobile Holdings Limited GELYY, Volvo VLVLY and Canoo Inc. GOEV, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GELYY’s 2024 sales suggests year-over-year growth of 36.6%. The EPS estimates for 2024 and 2025 have moved up 34 cents and 54 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for VLVLY’s 2024 earnings suggests year-over-year growth of 0.43%. The EPS estimates for 2024 and 2025 have improved 5 cents and 11 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for GOEV’s 2024 sales and earnings suggests year-over-year growth of 7,722.3% and 68.24%, respectively. The EPS estimates for 2024 and 2025 have improved $4.27 and $4.71, respectively, in the past 30 days.
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Gentex Corporation (GNTX) : Free Stock Analysis Report
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