NASDAQ$GNTX

Gentex Corporation · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Gentex reported a 24% increase in net sales compared to Q3 2021, but gross margin decreased due to cost increases and unfavorable product mix.

Gentex Corporation reported a 24% increase in net sales for Q3 2022, reaching $493.6 million. However, net income decreased slightly due to lower gross margins impacted by rising costs and product mix issues. The company is implementing cost escalation negotiations with customers to improve margins in the coming quarters.

  • Net sales increased by 24% to $493.6 million compared to Q3 2021.
  • Gross profit margin decreased to 29.8% due to raw material cost increases and unfavorable product mix.
  • Net income was $72.7 million, slightly lower than $76.7 million in Q3 2021.
  • Automotive net sales increased 23% to $480.9 million.

Headline financials

Total Revenue

$494M

Previous: $400M+23.5%
EPS (adj)

$0.31

Previous: $0.32-3.1%
Free Cash Flow

$72.7M

Previous: $76.7M-5.2%
Net Income

$72.7M

Previous: $76.7M-5.2%
Operating Income

$86.8M

Previous: $88.2M-1.6%
Gross Profit

$147M

Previous: $141M+4.5%
Cash & Equivalents

$223M

Previous: $270M-17.4%
Total Assets

$2.31B

Previous: $2.12B+9.2%
Stock-Based Comp

$7.61M

Previous: $7.49M+1.6%

Revenue & EPS history

Gentex · Revenue · Quarterly

$494M

Q3 2022+23.5%vs Q3 2021
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Gentex · $9.4M total across 1 segment · Q2 2023

  • Other Net Sales
    $9.4M-10.5%

Forward guidance

Gentex expects revenue to remain difficult to forecast for the remainder of the year due to volatility in customer orders, vehicle production volumes, electronics supply chain constraints, the Ukraine-Russia conflict, labor shortages, and overall economic uncertainty. The company updated its 2022 revenue guidance to $1.90 - $1.95 billion and anticipates calendar year 2023 revenue growth of approximately 15% - 20% above the new 2022 revenue guidance.

Tailwinds

  • Light vehicle production in North America is expected to increase 12% for Q4 2022 compared to Q4 2021.
  • Light vehicle production in Europe is expected to increase 3% for Q4 2022 compared to Q4 2021.
  • Light vehicle production in Japan and Korea is expected to increase 9% for Q4 2022 compared to Q4 2021.
  • The Company expects to see improvements to margins that will be driven by the benefit of the Company’s first rounds of cost escalation negotiations with customers to address ongoing commodity, freight and labor pricing pressure.
  • These improvements should continue throughout 2023 and into 2024, as we work to offset cost increases with updated pricing.

Headwinds

  • Light vehicle production in China is expected to decrease 4% for Q4 2022 compared to Q4 2021.
  • Revenue will remain difficult to forecast for the remainder of the year as a result of high levels of volatility in customer orders and vehicle production volumes.
  • Electronics supply chain constraints continue to be a concern.
  • The Ukraine-Russia conflict adds to the overall economic uncertainty.
  • Labor shortages are impacting production.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

-0.9%

Avg return

Earnings day

+0.1%

Avg return

5 days after

+0.6%

Avg return

30 days after

45%

31 / 69 earnings

Positive

+11.4%

Q2 2019

Best reaction

-29.1%

Q2 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.7%-0.6%+3.5%
Q4 2025-4.3%+3.4%-2.7%
Q3 2025-10.2%-9.8%-14.8%
Q2 2025-0.5%-0.5%+2.2%
Q1 2025-2.8%-0.9%-1.6%
Q4 2024-8.2%-10.3%-13.8%
Q3 2024+5.5%+4.9%+2.5%
Q2 2024-3.7%-4.6%-4.1%
Q1 2024+0.6%-2.0%-0.8%
Q4 2023+5.8%+4.1%+13.3%
Q3 2023-6.7%-4.3%+2.8%
Q2 2023+5.8%+6.1%+0.7%
Q1 2023+5.8%+4.6%+2.4%
Q4 2022-3.0%+1.7%-2.4%
Q3 2022+3.4%+0.4%+12.2%
Q2 2022-7.5%-5.2%-2.4%
Q1 2022+6.8%+3.5%+4.3%
Q4 2021+0.4%+2.5%-3.4%
Q3 2021-5.3%-4.4%-0.6%
Q2 2021+1.3%+4.2%-1.7%
Q1 2021-0.4%+0.4%-2.5%
Q4 2020+1.3%+3.3%+5.5%
Q3 2020+0.7%-4.0%+11.7%
Q2 2020+2.4%+4.9%+2.0%
Q1 2020+5.1%+7.6%+9.9%
Q4 2019-4.0%-2.0%-13.7%
Q3 2019-0.4%+1.3%+3.2%
Q2 2019+11.4%+15.0%+12.1%
Q1 2019+3.0%+4.6%-0.6%
Q4 2018-8.0%-9.0%-11.0%
Q3 2018+10.0%+7.6%+20.9%
Q2 2018-3.8%-5.0%+3.3%
Q1 2018-6.2%-2.8%+1.6%
Q4 2017+2.5%+3.5%+2.6%
Q3 2017-8.5%-8.1%-7.8%
Q2 2017-9.2%-7.4%-8.3%
Q1 2017-1.3%-0.7%-9.2%
Q4 2016-3.4%-4.7%-3.6%
Q3 2016-2.4%-3.8%+3.3%
Q2 2016+7.8%+11.3%+10.1%
Q1 2016+0.2%
Q4 2015+2.6%
Q3 2015-0.1%
Q2 2015-1.8%
Q1 2015-0.3%
Q4 2014-4.4%
Q3 2014+9.3%
Q2 2014+2.0%
Q1 2014+1.1%
Q4 2013-1.9%
Q3 2013+10.4%
Q2 2013-5.0%
Q1 2013+4.1%
Q4 2012+3.0%
Q3 2012-3.4%
Q2 2012-29.1%
Q1 2012-16.4%
Q4 2011-1.4%
Q3 2011+0.7%
Q2 2011-8.1%
Q1 2010-1.2%
Q1 2011+2.6%
Q4 2010-4.8%
Q3 2010+2.8%
Q3 2009+2.8%
Q2 2010-1.9%
Q4 2008-1.9%
Q2 2009-1.9%
Q4 2009-1.9%

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