A virtual meeting focusing on (GNTX, Financial) is scheduled for June 16, organized by B. Riley. This event will provide insights into the company's performance, allowing investors to make more informed decisions. Participants can expect to gain a deeper understanding of the company's key performance indicators and strategies.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for Gentex Corp (GNTX, Financial) is $26.46 with a high estimate of $38.11 and a low estimate of $21.00. The average target implies an upside of 19.17% from the current price of $22.20. More detailed estimate data can be found on the Gentex Corp (GNTX) Forecast page.
Based on the consensus recommendation from 11 brokerage firms, Gentex Corp's (GNTX, Financial) average brokerage recommendation is currently 2.5, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Gentex Corp (GNTX, Financial) in one year is $38.14, suggesting a upside of 71.8% from the current price of $22.2. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Gentex Corp (GNTX) Summary page.
GNTX Key Business Developments
Release Date: April 25, 2025
- Net Sales: $576.8 million, down from $590.2 million in the first quarter of last year.
- Gross Margin: 33.2%, compared to 34.3% in the first quarter of last year.
- Operating Expenses: Increased by 8% to $78.7 million, including $2.9 million in severance-related expenses.
- Income from Operations: $113 million, down from $129.3 million in the first quarter of last year.
- Net Income: $94.9 million, compared to $108.2 million for the first quarter of last year.
- Earnings Per Diluted Share: $0.42, compared to $0.47 in the first quarter of last year.
- Automotive Net Sales: $563.9 million, down from $577.6 million in the first quarter of last year.
- Cash Flow from Operations: $148.5 million, compared to $129.9 million for the first quarter of last year.
- Capital Expenditures: $36.7 million, compared with $31.9 million for the first quarter of last year.
- Share Repurchases: 3.1 million shares at an average price of $24.52 per share.
- Cash and Cash Equivalents: $286.6 million, up from $233.3 million as of December 31, 2024.
- Revenue Guidance for 2025: Expected to be between $2.1 billion and $2.2 billion in primary markets.
- Gross Margin Guidance for 2025: Expected to be between 33% and 34%.
- Operating Expenses Guidance for 2025: Expected to be between $300 million and $310 million.
- Capital Expenditures Guidance for 2025: Expected to be between $100 million and $125 million.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Gentex Corp (GNTX, Financial) reported a sequential improvement in gross margin by 70 basis points due to purchasing cost reductions and higher sales levels compared to the fourth quarter of 2024.
- The company successfully launched 21 new nameplate products in the first quarter, with 60% featuring advanced technologies such as Full Display Mirror and HomeLink.
- Gentex Corp (GNTX) is seeing strong demand for its Full Display Mirror products, with an expected increase in shipments by approximately 100,000 units in 2025 compared to 2024.
- The company has a robust pipeline of automotive and non-automotive products, including driver monitoring systems and new fire protection devices, which are expected to drive future growth.
- Gentex Corp (GNTX) completed a strategic merger with VOXX, expected to add significant revenue on an annualized basis, enhancing its product portfolio and market reach.
Negative Points
- Net sales for the first quarter of 2025 decreased to $576.8 million from $590.2 million in the same period last year, impacted by a weaker trim-mix in light vehicle production.
- The company faced a sales shortfall of approximately $25 million to $30 million due to decreased exterior mirror unit shipments, down 15% quarter over quarter in North America.
- Operating expenses increased by 8% to $78.7 million, driven by severance-related expenses and costs associated with the VOXX merger.
- Gentex Corp (GNTX) is experiencing significant revenue headwinds due to new tariffs, with an estimated $50 million in incremental cost of goods sold for the year.
- The company has proactively halted production for the China market due to tariff escalation, leading to potential revenue loss and uncertainty in customer demand.
