In This Article:
Gentex Corporation’s GNTX fourth-quarter 2024 earnings per share (EPS) of 39 cents missed the Zacks Consensus Estimate of 49 cents and decreased 22% year over year.
This Zeeland-based automotive products supplier reported net sales of $542 million, which missed the Zacks Consensus Estimate of $602 million and fell 8% from the year-ago period. The company recorded a gross margin of 32.5%, reflecting a decline of 200 basis points from the fourth quarter of 2023 due to lower-than-expected sales, an unfavorable product mix and difficulty in spreading overhead costs efficiently.
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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 $531.3 million in the fourth quarter, lower than the $578.7 million reported in the year-ago quarter and missed our estimate of $585.9 million. In the reported quarter, auto-dimming mirror shipments in the North American market decreased 10% to 3,438,000 units. Shipments fell 14% year over year in the international markets to 7,339,000 units. Total shipments declined 13% to 10,777,000 units.
Other net sales, which include dimmable aircraft windows, fire protection products and medical products decreased from the year-ago quarter’s $10.5 million to $10.3 million and lagged our estimate of $13.5 million. Fire protection sales increased 5% year over year, while dimmable aircraft window sales decreased 23% year over year. Medical product sales totaled $0.6 million in the fourth quarter of 2024.
Financial Tidbits
Total operating expenses rose 22% year over year to $86.5 million in fourth-quarter 2024. Engineering and R&D expenses increased to $47.06 million from $41.53 million. SG&A expenses rose to $30.53 million from $29.06 million recorded in the corresponding quarter of 2023.
GNTX paid a dividend of 12 cents per share in the quarter. It repurchased 603,396 shares of its common stock at an average price of $30.54 per share. As of Dec. 31, 2024, the company had nearly 9.4 million shares remaining for buyback, per its previously announced share repurchase plan. Gentex had cash and cash equivalents of about $233.3 million as of Dec. 31, 2024.
GNTX Provides 2025 Guidance
Gentex expects 2025 net sales in the range of $2.40-$2.45 billion compared with $2.31 billion recorded in 2024. The gross margin is projected in the band of 33.5-34.5% compared with the 33.3% reported in 2024. Capital expenditure is anticipated between $125 million and $150 million, while operating expenses are estimated in the band of $310-$320 million.