Gentherm Incorporated ( NASDAQ: THRM ) broke higher on Wednesday after posting a strong Q3 earnings report and backing full-year guidance.
Product revenue increased 36.8% to $333M during the quarter, which helped the company knock out the highest quarterly revenue in company history. Organic revenue of $290.4M also set a record after excluding revenue from the acquired businesses. Excluding the impact of foreign currency translation, product revenue increased 44.4%.
Automotive revenues increased 38.4% Y/Y driven by contribution from the acquisition of Alfmeier as well as growth in Steering Wheel Heaters, Climate Controlled Seat, Seat Heaters, Battery Performance Solutions, and Other Automotive.
THRM noted that demand for thermal and pneumatic massage and lumbar comfort solutions, especially in the electric vehicle market, continues to be strong.
Gross margin fell sharply to 24.1% from 28.5% a year ago, primarily as a result of wage and material inflation, the industry-wide supply chain disruptions, the acquired Alfmeier business having a lower gross margin rate relative to the Company’s organic business, as well as the negative impact from foreign currency translation. Those margins headwinds were partially offset by fixed cost leverage from higher unit volume and cost recoveries from customers.
Shares of Gentherm ( THRM ) gained 10.05% after the earnings topper.
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Gentherm soars after strong sales help take the sting off inflation headwinds