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.

Zacks Rank & Key Picks

GNTX carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the auto space are Geely Automobile Holdings Limited GELYY, Yamaha Motor Co., Ltd. YMHAY and Allison Transmission Holdings, Inc. ALSN. While GELYY sports a Zacks Rank #1 (Strong Buy), YMHAY and ALSN carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for GELYY’s fiscal 2025 sales and earnings suggests year-over-year growth of 66.62% and 149.31%, respectively. EPS estimates for fiscal 2025 and 2026 have improved by 15 cents and 38 cents, respectively, in the past 30 days. 

The Zacks Consensus Estimate for YMHAY’s 2025 sales and earnings suggests year-over-year growth of 8.69%and 19.07%, respectively. EPS estimates for 2025 have improved by a penny in the past 60 days.

The Zacks Consensus Estimate for ALSN’s 2025 sales and earnings suggests year-over-year growth of 6.67% and 11.40%, respectively. EPS estimates for 2025 have improved 3 cents in the past 30 days.

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