NASDAQ$GNTX

Gentex Corporation · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Gentex experienced significant growth in Q3 2023, driven by increased sales and improved operational efficiency.

Gentex reported a strong third quarter in 2023, with a 17% increase in net sales to $575.8 million and a 44% increase in net income to $104.7 million. Earnings per diluted share rose by 45% to $0.45. The company benefited from improved market conditions and the success of its technology platforms.

  • Net sales increased by 17% to $575.8 million compared to Q3 2022.
  • Earnings per diluted share increased by 45% to $0.45 compared to Q3 2022.
  • Gross profit margin improved to 33.2%, a 340 basis point increase from Q3 2022.
  • Automotive net sales increased by 17% to $564.5 million compared to Q3 2022.

Headline financials

Total Revenue

$576M

Previous: $494M+16.7%
EPS (adj)

$0.45

Previous: $0.31+45.2%
Total Auto-Dimming Mirror Units

12.6M

No prior period
Consolidated Gross Margin

33.2%

No prior period
Free Cash Flow

$105M

Previous: $72.7M+44.1%
Net Income

$105M

Previous: $72.7M+44.1%
Operating Income

$122M

Previous: $86.8M+41.0%
Gross Profit

$191M

Previous: $147M+30.1%
Cash & Equivalents

$261M

Previous: $223M+16.9%
Total Assets

$2.56B

Previous: $2.31B+10.7%
R&D Expense

$40.2M

No prior period
Stock-Based Comp

$10.9M

Previous: $7.61M+43.8%

Revenue & EPS history

Gentex · Revenue · Quarterly

$576M

Q3 2023+16.7%vs Q3 2022
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 continued revenue growth and margin improvement, but anticipates potential impacts from UAW strikes. The company is on track for record revenue in 2023 and aims to achieve a 35-36% gross margin by the end of 2024.

Tailwinds

  • Light vehicle production is expected to increase 4% for Q4 2023.
  • The company is on pace for record setting revenue this year.
  • Strong demand for outside mirrors and advanced electronic features.
  • Progress on the path toward improved profitability continues.
  • Executing additional cost improvement initiatives.

Headwinds

  • Fourth quarter will likely be impacted by the UAW strikes from both a revenue and margin perspective.
  • Certain product mix issues that will hopefully subside as we move into the fourth quarter and next year.
  • Uncertainty in pricing negotiations with customers and suppliers.
  • Raw material and other supply shortages.
  • Labor shortages, supply chain constraints and disruptions.

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 2023

Historical avgQ3 2023

-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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