Core Insights - Gentex Corporation (GNTX) reported a fourth-quarter 2024 earnings per share (EPS) of 39 cents, missing the Zacks Consensus Estimate of 49 cents and reflecting a 22% year-over-year decline [1] - The company’s net sales for the quarter were $542 million, falling short of the Zacks Consensus Estimate of $602 million and decreasing by 8% compared to the previous year [2] Financial Performance - Gross margin for the quarter was 32.5%, down 200 basis points from the fourth quarter of 2023, attributed to lower-than-expected sales, an unfavorable product mix, and challenges in overhead cost management [2] - Total operating expenses increased by 22% year over year to $86.5 million, with engineering and R&D expenses rising to $47.06 million from $41.53 million, and SG&A expenses increasing to $30.53 million from $29.06 million [5] Segmental Performance - The Automotive segment, which is the primary revenue contributor, reported net sales of $531.3 million, down from $578.7 million in the year-ago quarter and below the estimate of $585.9 million [3] - Auto-dimming mirror shipments in North America decreased by 10% to 3,438,000 units, while international shipments fell by 14% year over year to 7,339,000 units, leading to a total shipment decline of 13% to 10,777,000 units [3] Other Sales and Dividends - Other net sales, including dimmable aircraft windows and fire protection products, decreased from $10.5 million to $10.3 million, missing the estimate of $13.5 million [4] - Gentex paid a dividend of 12 cents per share during the quarter and repurchased 603,396 shares at an average price of $30.54 per share, with nearly 9.4 million shares remaining for buyback as of December 31, 2024 [6] 2025 Guidance - For 2025, Gentex expects net sales to be in the range of $2.40-$2.45 billion, compared to $2.31 billion in 2024, with a projected gross margin of 33.5-34.5% [7] - Capital expenditure is anticipated to be between $125 million and $150 million, while operating expenses are estimated to be in the range of $310-$320 million [7]

Core Insights - Gentex (GNTX) reported a revenue of $541.64 million for Q4 2024, marking an 8.1% decline year-over-year and a surprise of -10.03% compared to the Zacks Consensus Estimate of $602 million [1] - The earnings per share (EPS) for the same quarter was $0.39, down from $0.50 a year ago, with an EPS surprise of -20.41% against the consensus estimate of $0.49 [1] Financial Performance Metrics - Gentex's stock has returned +0.4% over the past month, while the Zacks S&P 500 composite has increased by +2.9%, indicating underperformance relative to the broader market [3] - The company holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the market in the near term [3] Auto-Dimming Mirror Shipments - Total Interior Mirrors shipped were 6.69 million, below the average estimate of 7.49 million [4] - Total Exterior Mirrors shipped were 4.09 million, compared to the average estimate of 4.57 million [4] - Total Auto-Dimming Mirror Units shipped were 10.78 million, against an estimated 12.06 million [4] - North American Mirror Units shipped totaled 3.44 million, below the average estimate of 3.82 million [4] - International Exterior Mirrors shipped were 2.66 million, compared to the estimated 2.89 million [4] - North American Exterior Mirrors shipped were 1.43 million, against an estimate of 1.69 million [4] - Total International Mirror Units shipped were 7.34 million, below the average estimate of 8.24 million [4] - International Interior Mirrors shipped were 4.68 million, compared to the average estimate of 5.36 million [4] - North American Interior Mirrors shipped totaled 2 million, below the estimate of 2.13 million [4] Revenue Breakdown - Revenue from Automotive Products was $531.30 million, significantly lower than the average estimate of $590.93 million, representing an 8.2% year-over-year decline [4] - Other revenue was reported at $10.30 million, below the three-analyst average estimate of $12.72 million, reflecting a year-over-year change of -1.9% [4]

Core Viewpoint - Gentex (GNTX) reported quarterly earnings of $0.39 per share, missing the Zacks Consensus Estimate of $0.49 per share, and down from $0.50 per share a year ago [1][2] Financial Performance - The earnings surprise for the quarter was -20.41%, with the company previously expected to earn $0.50 per share but actually earning $0.53 per share in the prior quarter, resulting in a positive surprise of 6% [2] - Gentex's revenues for the quarter were $541.64 million, missing the Zacks Consensus Estimate by 10.03%, and down from $589.13 million year-over-year [3] - The company has not surpassed consensus revenue estimates in the last four quarters [3] Stock Performance - Gentex shares have declined approximately 1.8% since the beginning of the year, while the S&P 500 has gained 3.2% [4] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [7] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.50 on revenues of $610.55 million, and for the current fiscal year, it is $2.10 on revenues of $2.5 billion [8] - The outlook for the Automotive - Original Equipment industry, to which Gentex belongs, is currently in the bottom 30% of Zacks industries, which may impact stock performance [9]

Financial Performance - For Q4 2024, the company reported net sales of $541.6 million, an 8% decrease from $589.1 million in Q4 2023[3] - The gross profit margin for Q4 2024 was 32.5%, down from 34.5% in Q4 2023, primarily due to lower sales levels and a weaker product mix[4] - For the full year 2024, net sales reached $2.31 billion, a 1% increase from $2.30 billion in 2023, marking the highest annual sales in company history[8] - Net income for the full year 2024 was $404.49 million, compared to $428.40 million in 2023, representing a decline of 6%[30] - Earnings per share (EPS) for Q4 2024 were $0.39, down from $0.50 in Q4 2023[30] Shipments and Production - Full Display Mirror (FDM) unit shipments for 2024 totaled 2.96 million, representing a 21% increase compared to 2023[3] - Total auto-dimming mirror units shipped in Q4 2024 were 10,777 thousand, a 13% decrease compared to 12,356 thousand in Q4 2023[28] - North American interior mirror shipments decreased by 3% year-over-year, totaling 2,004 thousand units in Q4 2024[28] - International exterior mirror shipments fell by 15% year-over-year, totaling 2,656 thousand units in Q4 2024[28] Expenses and Investments - Operating expenses for Q4 2024 increased by 22% to $86.5 million, influenced by staffing and engineering-related professional fees[5] - The company reported an impairment expense of $8.86 million in Q4 2024, which was not present in Q4 2023[30] - The company plans to continue investing in engineering capabilities and new technologies to support product launches and achieve sustainable growth[21] Shareholder Returns - The company returned $316.5 million to shareholders in 2024, a 23% increase from the previous year, including $206.1 million in share repurchases[3] Tax and Forecast - The effective tax rate for 2024 was 14.3%, down from 15.2% in 2023, due to increased benefits from foreign derived intangible income deductions[12] - The company forecasts 2025 revenue between $2.40 billion and $2.45 billion, with a gross margin target of 33.5% to 34.5%[20] - Light vehicle production in 2025 is expected to decrease by 3% in North America and Europe compared to 2024, while total production is projected to increase by 2% in 2026[19] Assets and Cash - Total assets increased to $2.76 billion as of December 31, 2024, up from $2.61 billion a year earlier[32] - Cash and cash equivalents rose to $233.32 million, compared to $226.44 million at the end of 2023[32]

Core Insights - Gentex Corporation reported a decrease in net sales for Q4 2024, totaling $541.6 million, down 8% from $589.1 million in Q4 2023, attributed to a 6% decline in light vehicle production in key markets [3][6] - The company achieved a record annual net sales of $2.31 billion for 2024, a 1% increase from $2.30 billion in 2023, despite a more than 4% decrease in light vehicle production [8][11] - The gross margin for Q4 2024 was 32.5%, down from 34.5% in Q4 2023, primarily due to lower sales levels and a weaker product mix [3][9] Fourth Quarter 2024 Highlights - Net sales were $541.6 million, a decrease of 8% year-over-year [3][6] - Gross profit margin was 32.5%, down from 34.5% in Q4 2023 [3][9] - Income from operations was $89.8 million, compared to $132.8 million in Q4 2023 [5][6] - Net income for Q4 2024 was $87.7 million, down from $116.9 million in Q4 2023 [7][11] - Earnings per diluted share were $0.39, compared to $0.50 in Q4 2023 [7][12] Calendar Year 2024 Highlights - Total net sales reached $2.31 billion, marking a new annual sales record [6][8] - Gross profit margin for the year was 33.3%, slightly up from 33.2% in 2023 [9][11] - Net income for the year was $404.5 million, down from $428.4 million in 2023 [11][12] - Earnings per diluted share for the year were $1.76, compared to $1.84 in 2023 [12][11] - Full Display Mirror unit shipments increased by 21% to 2.96 million units [6][13] Operating Expenses and Financial Performance - Operating expenses in Q4 2024 rose 22% to $86.5 million, influenced by staffing and engineering-related fees [4][10] - For the full year, operating expenses increased 17% to $311.4 million [10] - The effective tax rate for Q4 2024 was 10.3%, down from 15.2% in 2023 [7][11] Shareholder Returns - The company returned $316.5 million to shareholders in 2024, a 23% increase from the previous year [6] - Share repurchases totaled $206.1 million for the year, with 6.4 million shares repurchased [15] Future Guidance - For 2025, the company forecasts revenue between $2.40 billion and $2.45 billion, with a gross margin target of 33.5% to 34.5% [18] - Light vehicle production is expected to decline further in 2025, but the company anticipates revenue growth driven by new product launches [20][19]

Company Overview - Gentex (GNTX) is expected to report quarterly earnings of $0.49 per share, reflecting a year-over-year decline of 2% [3] - Revenues are anticipated to be $601.1 million, which is a 2% increase from the previous year [3] Earnings Expectations - Wall Street anticipates a year-over-year decline in earnings despite higher revenues, indicating a mixed outlook for the company [1] - The consensus EPS estimate has remained unchanged over the last 30 days, suggesting stability in analyst expectations [4] Earnings Surprise Prediction - The Most Accurate Estimate for Gentex is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -5.35%, indicating a bearish sentiment among analysts [10] - Gentex holds a Zacks Rank of 2 (Buy), which complicates predictions regarding an earnings beat [11] Historical Performance - In the last reported quarter, Gentex exceeded expectations by delivering earnings of $0.53 per share against an estimate of $0.50, resulting in a surprise of +6% [12] - Over the past four quarters, Gentex has beaten consensus EPS estimates two times [13] Industry Comparison - Mobileye Global (MBLY), another player in the automotive industry, is expected to report a significant year-over-year decline in earnings per share of 57.1% and a revenue drop of 24.6% [17] - Mobileye's consensus EPS estimate has been revised down by 33.3% over the last 30 days, but it currently has a positive Earnings ESP of 20.00% [18]

Core Viewpoint - Gentex (GNTX) is currently viewed as a more attractive investment option compared to Modine (MOD) for value investors seeking undervalued stocks [1][3][7] Valuation Metrics - GNTX has a forward P/E ratio of 13.24, significantly lower than MOD's forward P/E of 37.29 [5] - The PEG ratio for GNTX is 0.87, indicating better expected earnings growth relative to its price compared to MOD's PEG ratio of 1.10 [5] - GNTX's P/B ratio stands at 2.63, while MOD's P/B ratio is considerably higher at 8.64 [6] Earnings Outlook - GNTX holds a Zacks Rank of 2 (Buy), suggesting a positive earnings estimate revision trend, whereas MOD has a Zacks Rank of 4 (Sell) [3] - The solid earnings outlook for GNTX positions it as the superior value option in the automotive sector [7]

Core Viewpoint - The article emphasizes the importance of value investing and highlights Gentex (GNTX) as a strong value stock based on its favorable valuation metrics and earnings outlook [2][4][7]. Valuation Metrics - Gentex (GNTX) has a Zacks Rank of 2 (Buy) and an A grade for Value, indicating strong potential for undervaluation [4]. - The current P/E ratio for GNTX is 13.20, significantly lower than the industry average P/E of 20.59 [4]. - GNTX's Forward P/E has fluctuated between 12.71 and 16.77 over the past 52 weeks, with a median of 14.80 [4]. - The PEG ratio for GNTX is 0.86, compared to the industry's average PEG of 1.59, suggesting better value relative to growth expectations [5]. - GNTX's PEG has ranged from 0.67 to 1.01 in the past year, with a median of 0.88 [5]. - The P/B ratio for GNTX stands at 2.63, which is lower than the industry average P/B of 3.54 [6]. - Over the last 12 months, GNTX's P/B has varied between 2.53 and 3.74, with a median of 3.19 [6]. Investment Outlook - The combination of GNTX's strong valuation metrics and positive earnings outlook positions it as an impressive value stock currently [7].

Company Overview - Gentex Corp started in the early 1970s in Western Michigan as a manufacturer of smoke detectors [1] - The company introduced an automatic dimming vehicle mirror less than a decade later, which was a safety innovation to reduce nighttime driving dangers [1] Industry Expertise - The author is a journalist based in Detroit with extensive experience covering business and economic topics for major publications like The Wall Street Journal, New York Times, Detroit Free Press, and Bloomberg [1] - The author is an acknowledged expert on the global automotive industry and has written two books on the subject [1]

Gentex CES 2025 Highlights: Dimmable sun visors with switchable vanity mirror and integrated displayNew film-based electrochromic (dimmable) sunroof glassMirror-integrated driver and in-cabin monitoring systemsDigital rearview mirrors with OLED display and water-shedding camera lensNext-gen HomeLink car-to-home automation system compatible with leading smart home brandsThermal imaging technology for nighttime pedestrian detection in automatic emergency braking systemsElectrochromic sunglasses conceptSolace ...