GNTX - Gentex beats Q2 top and bottom line estimates; updates FY23 outlook

2023-07-28 08:06:04 ET

• Gentex press release ( NASDAQ: GNTX ): Q2 GAAP EPS of $0.47 beats by $0.06 .
• Revenue of $583.5M (+25.9% Y/Y) beats by $28.81M .
• Unit shipments of 12.9 million, a quarterly record, and a 21% increase compared to the second quarter of 2022.
• During the second quarter of 2023, the Company had an effective tax rate of 15.1%, which was primarily driven by the benefit of the foreign derived intangible income deduction.
• “Late last year we formulated our plan for margin recovery that we estimated would take until the end of 2024 to complete. So far, I am very pleased with our progress and believe we are well on our way to accomplishing the goal of achieving a gross margin of 35-36% by the end of next year,” said President and CEO, Steve Downing.
• Based on this light vehicle production forecast, the Company is updating certain previously provided guidance estimates for calendar year 2023: Revenue of $2.2 - 2.3 billion vs. $2.21B consensus; Gross Margin of 32.5% - 33%; Capital Expenditures of $200 - $225 million.
• Additionally, based on the Company’s current forecasts for light vehicle production for calendar year 2024, which is currently estimated to increase by 1% as compared to 2023, the Company at this time expects calendar year 2024 revenue of approximately $2.45 - $2.55 billion.

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