We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Gentex Corporation (GNTX - Free Report) reported fourth-quarter 2021 earnings of 35 cents per share, marginally topping the Zacks Consensus Estimate of 34 cents. Higher-than-expected auto-dimming mirror shipments in North America and international markets resulted in the outperformance. The reported figure compares unfavorably with the prior-year quarter’s earnings of 58 cents.
This Zeeland-based automotive products supplier reported net sales of $420 million, on par with the Zacks Consensus Estimate. The top line fell 20.8% year over year. The company recorded gross margin of 34.3%, lower than the year-ago quarter’s 40.9%, led by increases in raw material costs, freight-related cost, labor cost due to higher wages and labor inefficiencies created by last-minute changes in customer demand and electronics component shortages.
Segmental Performance
The Automotive segment’s net sales — which have the highest contribution to Gentex’s revenues — totaled $409.6 million in the fourth quarter, 27.3% lower than the $521.6 million reported in the year-ago quarter. The figure topped the Zacks Consensus Estimate of $399 million. In the reported quarter, auto-dimming mirror shipments in the North America market fell 14.3% to 3,219,000 units but topped the consensus mark of 2,667,000 units. Shipments declined almost 20% year over year in the international markets to 6,594,000 units but beat the Zacks Consensus Estimate of 5,754,000 units. Total shipments slid 18% to 9,813,000 units.
Other net sales, which include dimmable aircraft windows and fire protection products, increased 23% from the year-ago quarter to $10.2 million. Fire protection sales increased 32%. Gentex expects the dimmable aircraft window sales to continue being impacted until a meaningful recovery of the aerospace industry begins, and the Boeing 787 aircraft production levels get a boost.
Financial Tidbits
Total operating expenses rose 3% year over year to $56 million in fourth-quarter 2021. Engineering and R&D expenses increased to $31.3 million from $29.6 million. SG&A expenses moved down slightly to $24.6 million from $24.7 million recorded in the corresponding quarter of 2020.
Gentex paid dividends of 12 cents per share in the quarter. During the reported quarter, it repurchased 0.6 million shares of its common stock. Gentex had cash and cash equivalents of $262.3 million as of Dec 31, 2021, declining sharply by 38%.
2022 Guidance
The company’s forecasts for light vehicle production for the calendar year 2022 are based on the IHS Markit mid-January 2022 forecast for light vehicle production in North America, Europe, Japan/Korea and China. Light vehicle production in Gentex’s primary markets is expected to increase 8% for 2022 from the year-ago period. Gentex envisions 2022 net sales in the band of $1.87-$2.02 billion. Capital expenditure is envisioned in the band of $150-$175 million. Operating expenses are estimated within $230-$240 million.
For 2023, GNTX expects sales growth of 15-20% year over year.
Zacks Rank & Key Picks
Currently, Gentex carries a Zacks Rank #3 (Hold). GNTX’s shares have lost 9.5% over the past year compared to the industry’s 45.5% decline.
General Motors has an expected earnings growth rate of 2.12% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 4.1% upward over the past 60 days.
General Motors’ earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. GM pulled off a trailing four-quarter earnings surprise of 46.51%, on average. The stock has also rallied 1.5% over a year.
Tesla has an expected earnings growth rate of 35.21% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 5% upward over the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 25.38%, on average. The stock has also rallied 0.7% over a year.
Genuine Parts has an expected earnings growth rate of 10.03% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised around 2.2% upward over the past 60 days.
Genuine Parts’ earnings beat the Zacks Consensus Estimate in all the trailing four quarters. GPC pulled off a trailing four-quarter earnings surprise of 16%, on average. Its shares have gained 37.6% over a year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Gentex's (GNTX) Q4 Earnings Surpass Estimates, Revenues Meet
Gentex Corporation (GNTX - Free Report) reported fourth-quarter 2021 earnings of 35 cents per share, marginally topping the Zacks Consensus Estimate of 34 cents. Higher-than-expected auto-dimming mirror shipments in North America and international markets resulted in the outperformance. The reported figure compares unfavorably with the prior-year quarter’s earnings of 58 cents.
This Zeeland-based automotive products supplier reported net sales of $420 million, on par with the Zacks Consensus Estimate. The top line fell 20.8% year over year. The company recorded gross margin of 34.3%, lower than the year-ago quarter’s 40.9%, led by increases in raw material costs, freight-related cost, labor cost due to higher wages and labor inefficiencies created by last-minute changes in customer demand and electronics component shortages.
Segmental Performance
The Automotive segment’s net sales — which have the highest contribution to Gentex’s revenues — totaled $409.6 million in the fourth quarter, 27.3% lower than the $521.6 million reported in the year-ago quarter. The figure topped the Zacks Consensus Estimate of $399 million. In the reported quarter, auto-dimming mirror shipments in the North America market fell 14.3% to 3,219,000 units but topped the consensus mark of 2,667,000 units. Shipments declined almost 20% year over year in the international markets to 6,594,000 units but beat the Zacks Consensus Estimate of 5,754,000 units. Total shipments slid 18% to 9,813,000 units.
Other net sales, which include dimmable aircraft windows and fire protection products, increased 23% from the year-ago quarter to $10.2 million. Fire protection sales increased 32%. Gentex expects the dimmable aircraft window sales to continue being impacted until a meaningful recovery of the aerospace industry begins, and the Boeing 787 aircraft production levels get a boost.
Financial Tidbits
Total operating expenses rose 3% year over year to $56 million in fourth-quarter 2021. Engineering and R&D expenses increased to $31.3 million from $29.6 million. SG&A expenses moved down slightly to $24.6 million from $24.7 million recorded in the corresponding quarter of 2020.
Gentex paid dividends of 12 cents per share in the quarter. During the reported quarter, it repurchased 0.6 million shares of its common stock. Gentex had cash and cash equivalents of $262.3 million as of Dec 31, 2021, declining sharply by 38%.
2022 Guidance
The company’s forecasts for light vehicle production for the calendar year 2022 are based on the IHS Markit mid-January 2022 forecast for light vehicle production in North America, Europe, Japan/Korea and China. Light vehicle production in Gentex’s primary markets is expected to increase 8% for 2022 from the year-ago period. Gentex envisions 2022 net sales in the band of $1.87-$2.02 billion. Capital expenditure is envisioned in the band of $150-$175 million. Operating expenses are estimated within $230-$240 million.
For 2023, GNTX expects sales growth of 15-20% year over year.
Zacks Rank & Key Picks
Currently, Gentex carries a Zacks Rank #3 (Hold). GNTX’s shares have lost 9.5% over the past year compared to the industry’s 45.5% decline.
Some better-ranked players in the auto space are General Motors (GM - Free Report) and Tesla (TSLA - Free Report) , each sporting a Zacks Rank #1 (Strong Buy), and Genuine Parts (GPC - Free Report) , carrying a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
General Motors has an expected earnings growth rate of 2.12% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 4.1% upward over the past 60 days.
General Motors’ earnings beat the Zacks Consensus Estimate in all of the trailing four quarters. GM pulled off a trailing four-quarter earnings surprise of 46.51%, on average. The stock has also rallied 1.5% over a year.
Tesla has an expected earnings growth rate of 35.21% for the current year. The Zacks Consensus Estimate for current-year earnings has been revised around 5% upward over the past 60 days.
Tesla’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters. TSLA pulled off a trailing four-quarter earnings surprise of 25.38%, on average. The stock has also rallied 0.7% over a year.
Genuine Parts has an expected earnings growth rate of 10.03% for the current year. The Zacks Consensus Estimate for earnings for the current year has been revised around 2.2% upward over the past 60 days.
Genuine Parts’ earnings beat the Zacks Consensus Estimate in all the trailing four quarters. GPC pulled off a trailing four-quarter earnings surprise of 16%, on average. Its shares have gained 37.6% over a year.