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Gentex's (GNTX) Q2 Earnings and Revenues Miss, Rise Y/Y

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Gentex Corporation (GNTX - Free Report) reported second-quarter 2018 earnings per share of 40 cents, missing the Zacks Consensus Estimate by a penny. However, the bottom-line figure was higher than the year-ago quarter’s figure of 31 cents per share.

During the quarter under review, the company reported net sales of $455 million, missing the Zacks Consensus Estimate of $473 million. However, the top line was higher than the net sales of $443.1 million in second-quarter 2017. When compared with the company’s mid-April forecast of HIS for second-quarter 2018, the light-vehicle production in North America declined by around 3%, leading to lower-than-expected unit shipments and revenues.

Net income for second-quarter 2018 rose 23% to $109 million compared with $88.5 million in second-quarter 2017.

Gentex Corporation Price, Consensus and EPS Surprise

 

Gentex Corporation Price, Consensus and EPS Surprise | Gentex Corporation Quote

Quarter in Details

During the reported quarter, the company recorded gross margin of 38%, up from the year-ago quarter figure of 37.7%. The company’s effective tax rate was 15.5%, down from 30.8% during second-quarter 2017, on account of the impacts of the tax planning moves, and Tax Cuts and Jobs Act of 2017.

During the quarter under review, auto-dimming mirror shipments in the North American market remained almost unchanged at 3.15 million units while it rose by 12% to 7.42 million in International market. In total, it rose by 8% year over year to 10.6 million.

Operating expenses during second-quarter 2018 were up 12% to $46.1 million in comparison with operating expenses of $41.3 million in second-quarter 2017, primarily due to increased staffing levels.

Share Repurchase

During second-quarter 2018, the company repurchased 6.3 million common shares at an average price of $23.33 per share. As of Jun 30, 2018, the company had around 19.7 million shares remaining for repurchase.

Financials

Gentex had cash and cash equivalents of $296.7 million as of Jun 30, 2018, compared with $569.7 million as of Dec 31, 2017.

Currently, Gentex carries a Zacks Rank #3 (Hold).

A few better-ranked stocks in the auto space are American Axle & Manufacturing Holdings, Inc. (AXL - Free Report) , General Motors Company (GM - Free Report) and Fox Factory Holding Corp. (FOXF - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

American Axle & Manufacturing has an expected long-term growth rate of 8.1%. Over the past three months, shares of the company have moved up 3.4%.

General Motors has an expected long-term growth rate of 8.8%. Over the past year, shares of the company have gained 10%.

Fox Factory has an expected long-term growth rate of 15.8%. Shares of the company have risen 35.5% over the past year.

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