Gentex Corp (NASDAQ:GNTX) shares are trading higher after it reported better-than-expected fourth-quarter financial results.
Sales grew 19% Y/Y to $589.1 million, beating the analyst consensus of $560.8 million. EPS of $0.50 beat the analyst consensus of $0.44.
In the fourth quarter of 2023, automotive net sales rose to $578.7 million from $482.9 million the prior year. Auto-dimming mirror unit shipments increased by 12%.
Light vehicle production in the main markets of North America, Europe, and Japan/Korea increased by approximately 6% quarter over quarter.
The gross profit margin of 34.5% expanded from 31.2% a year ago, led by recurring price increases to customers and one-time cost recoveries.
Operating expenses rose by 18% to $70.6 million. Operating income was $132.8 million, a 41% increase Y/Y.
During the fourth quarter of 2023, the company repurchased 2.2 million shares of its common stock at an average price of $30.76 per share.
The company held $240.8 million in cash and cash equivalents as of December 31, 2023.
Outlook: Gentex continues to expect FY24 revenue of approximately $2.45 billion – $2.55 billion (consensus: $2.50 billion).Â
Also, the company projects FY25 revenues of $2.65 billion-$2.75 billion. It projects light vehicle production of 74.3 million (-1% Y/Y) in FY24 and 75.6 million (+2% Y/Y) in FY25.
“As we head into 2024, the next phase of our gross margin recovery plan will focus on bill of material reductions, throughput improvements, and overtime and scrap cost reductions. The improvements made in 2023 combined with our targeted improvements for 2024 provide the roadmap of how to achieve our target of a 35% – 36% gross margin by the end of the year,” said Steve Downing, CEO.
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Price Action: GNTX shares are up 7.202% at $34.13 on the last check Friday.
