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Gentex (GNTX) Q1 Earnings Top Estimates, Rise 13.5% Y/Y
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Gentex Corporation (GNTX - Free Report) reported first-quarter 2023 earnings of 42 cents per share, surpassing the Zacks Consensus Estimate of 38 cents and increasing 13.5% from the year-ago quarter. Higher-than-expected worldwide auto-dimming mirror shipments led to the outperformance.
This Zeeland-based automotive products supplier reported net sales of $550.8 million, beating the Zacks Consensus Estimate of $544 million. Sales also increased 18% from the year-ago period. The company recorded a gross margin of 31.7%, lower than the year-ago quarter’s 34.3%, due to an increase in the cost of raw materials and labor.
The Automotive segment’s net sales — which contribute the most to Gentex’s revenues — totaled $537.4 million in the first quarter, 17% higher than $458 million reported in the year-ago quarter and higher than the Zacks Consensus Estimate of $525 million. In the reported quarter, auto-dimming mirror shipments in the North American market increased 12% to 4,045,000 units and came ahead of the consensus mark of 3,935,000 units. Shipments rose 18% year over year in the international markets to 8,672,000 units and topped the Zacks Consensus Estimate of 8,052,000 units. Total shipments increased 16% to 12,717,000 units, outpacing the consensus mark of 11,987,000 units.
Other net sales, which include dimmable aircraft windows and fire protection products, increased 29% from the year-ago quarter’s $10.3 million to $13.3 million and also topped the consensus metric of $11.23 million. Fire protection sales increased 10% year over year during the quarter under review. Dimmable aircraft window sales rocketed 118% year over year.
Financial Tidbits
Total operating expenses rose 8% year over year to $61.5 million in first-quarter 2023. Engineering and R&D expenses increased to $34.6 million from $31.9 million. SG&A expenses rose to $26.8 million from nearly $25.1 million recorded in the corresponding quarter of 2021.
Gentex paid a dividend of 12 cents per share in the quarter. During the quarter, it repurchased 1 million shares of its common stock at an average price of $27.19 per share. As of Mar 31, 2023, the company had nearly 19.7 million shares remaining for buyback per its previously announced share repurchase plan. Gentex had cash and cash equivalents of nearly $215.4 million as of Mar 31, 2023.
Guidance
Per IHS Markit, full-year 2023 and 2024 LVP is expected to increase 4% and 3%, respectively, on a year-over-year basis.
Gentex’s 2023 net sales are estimated to be $2.2 billion. The gross margin is projected in the band of 32%-33%. Capital expenditure is anticipated within $200-$225 million. Operating expenses are estimated in the band of $260-$270 million.
Peer Releases
Autoliv (ALV - Free Report) reported first-quarter 2023 adjusted earnings of 90 cents per share, beating the Zacks Consensus Estimate of 87 cents. Higher-than-expected revenues from the Airbags and Associated Products segment led to the outperformance. The bottom line also shot up 99% on a year-over-year basis. The company reported net sales of $2,493 million in the quarter, which topped the Zacks Consensus Estimate of $2,283 million and soared 17% year over year. Organic sales rose 21% year over year and breezed past the consensus mark of 6.27%.
Autoliv had cash and cash equivalents of $713 million as of Mar 31, 2023, down 24% year over year. Long-term debt totaled $1601 million, increasing from $1,054 million as of Dec 31, 2022. The company forecasts full-year 2023 organic sales growth of around 15%.
LearCorp. (LEA - Free Report) reported first-quarter 2023 adjusted earnings of $2.78 per share, which surged from $1.80 recorded in the year-ago quarter. The bottom line also surpassed the Zacks Consensus Estimate of $2.55 per share. Higher-than-expected contribution from the Seating segment led to the outperformance. In the reported quarter, revenues increased 12% year over year to $5,845.5 million. The top line also beat the Zacks Consensus Estimate of $5,505 million.
The company had $898.5 million in cash and cash equivalents at the quarter’s end versus $1,114.9 million recorded as of Dec 31, 2022. Lear had long-term debt of $2,591.6 million at quarter end compared with a debt of $2,591.2 million as of 2022-end.
Allison Transmission (ALSN - Free Report) posted first-quarter 2023 earnings of $1.85 a share, up 42% year over year and topped the Zacks Consensus Estimate of $1.52 owing to higher-than-anticipated sales from North America On-Highway, North America Off-Highway and Service Parts, Support Equipment & Other end markets. Quarterly revenues of $741 million grew 9% from the year-ago period and crossed the consensus mark of $715 million.
Allison had cash and cash equivalents of $344 million on Mar 31, 2023, up from $232 million as of Dec 31, 2022. Long-term debt was $2,500 million compared with $2,501 million as of Dec 31, 2022. During the first quarter, the company hiked its quarterly dividend by 10% to 23 cents/ share and repurchased 1% of outstanding shares.
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Gentex (GNTX) Q1 Earnings Top Estimates, Rise 13.5% Y/Y
Gentex Corporation (GNTX - Free Report) reported first-quarter 2023 earnings of 42 cents per share, surpassing the Zacks Consensus Estimate of 38 cents and increasing 13.5% from the year-ago quarter. Higher-than-expected worldwide auto-dimming mirror shipments led to the outperformance.
This Zeeland-based automotive products supplier reported net sales of $550.8 million, beating the Zacks Consensus Estimate of $544 million. Sales also increased 18% from the year-ago period. The company recorded a gross margin of 31.7%, lower than the year-ago quarter’s 34.3%, due to an increase in the cost of raw materials and labor.
Gentex currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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 — which contribute the most to Gentex’s revenues — totaled $537.4 million in the first quarter, 17% higher than $458 million reported in the year-ago quarter and higher than the Zacks Consensus Estimate of $525 million. In the reported quarter, auto-dimming mirror shipments in the North American market increased 12% to 4,045,000 units and came ahead of the consensus mark of 3,935,000 units. Shipments rose 18% year over year in the international markets to 8,672,000 units and topped the Zacks Consensus Estimate of 8,052,000 units. Total shipments increased 16% to 12,717,000 units, outpacing the consensus mark of 11,987,000 units.
Other net sales, which include dimmable aircraft windows and fire protection products, increased 29% from the year-ago quarter’s $10.3 million to $13.3 million and also topped the consensus metric of $11.23 million. Fire protection sales increased 10% year over year during the quarter under review. Dimmable aircraft window sales rocketed 118% year over year.
Financial Tidbits
Total operating expenses rose 8% year over year to $61.5 million in first-quarter 2023. Engineering and R&D expenses increased to $34.6 million from $31.9 million. SG&A expenses rose to $26.8 million from nearly $25.1 million recorded in the corresponding quarter of 2021.
Gentex paid a dividend of 12 cents per share in the quarter. During the quarter, it repurchased 1 million shares of its common stock at an average price of $27.19 per share. As of Mar 31, 2023, the company had nearly 19.7 million shares remaining for buyback per its previously announced share repurchase plan. Gentex had cash and cash equivalents of nearly $215.4 million as of Mar 31, 2023.
Guidance
Per IHS Markit, full-year 2023 and 2024 LVP is expected to increase 4% and 3%, respectively, on a year-over-year basis.
Gentex’s 2023 net sales are estimated to be $2.2 billion. The gross margin is projected in the band of 32%-33%. Capital expenditure is anticipated within $200-$225 million. Operating expenses are estimated in the band of $260-$270 million.
Peer Releases
Autoliv (ALV - Free Report) reported first-quarter 2023 adjusted earnings of 90 cents per share, beating the Zacks Consensus Estimate of 87 cents. Higher-than-expected revenues from the Airbags and Associated Products segment led to the outperformance. The bottom line also shot up 99% on a year-over-year basis. The company reported net sales of $2,493 million in the quarter, which topped the Zacks Consensus Estimate of $2,283 million and soared 17% year over year. Organic sales rose 21% year over year and breezed past the consensus mark of 6.27%.
Autoliv had cash and cash equivalents of $713 million as of Mar 31, 2023, down 24% year over year. Long-term debt totaled $1601 million, increasing from $1,054 million as of Dec 31, 2022. The company forecasts full-year 2023 organic sales growth of around 15%.
Lear Corp. (LEA - Free Report) reported first-quarter 2023 adjusted earnings of $2.78 per share, which surged from $1.80 recorded in the year-ago quarter. The bottom line also surpassed the Zacks Consensus Estimate of $2.55 per share. Higher-than-expected contribution from the Seating segment led to the outperformance. In the reported quarter, revenues increased 12% year over year to $5,845.5 million. The top line also beat the Zacks Consensus Estimate of $5,505 million.
The company had $898.5 million in cash and cash equivalents at the quarter’s end versus $1,114.9 million recorded as of Dec 31, 2022. Lear had long-term debt of $2,591.6 million at quarter end compared with a debt of $2,591.2 million as of 2022-end.
Allison Transmission (ALSN - Free Report) posted first-quarter 2023 earnings of $1.85 a share, up 42% year over year and topped the Zacks Consensus Estimate of $1.52 owing to higher-than-anticipated sales from North America On-Highway, North America Off-Highway and Service Parts, Support Equipment & Other end markets. Quarterly revenues of $741 million grew 9% from the year-ago period and crossed the consensus mark of $715 million.
Allison had cash and cash equivalents of $344 million on Mar 31, 2023, up from $232 million as of Dec 31, 2022. Long-term debt was $2,500 million compared with $2,501 million as of Dec 31, 2022. During the first quarter, the company hiked its quarterly dividend by 10% to 23 cents/ share and repurchased 1% of outstanding shares.