Why Is Gentex Corporation Stock Falling Today? - Gentex (NASDAQ:GNTX)

Core Viewpoint - Gentex Corporation's third-quarter earnings and sales fell short of analyst expectations, leading to a decline in share price [1][2]. Financial Performance - The company reported adjusted earnings per share of 46 cents, missing the consensus estimate of 47 cents [2]. - Quarterly sales reached $655.236 million, an 8% year-over-year increase, but fell short of the expected $664.513 million [2]. - Core Gentex revenue, excluding VOXX, was $570.3 million, representing a 6% decline from the third quarter of 2024 [2]. Regional Performance - North American OEM revenue increased approximately 5% quarter-over-quarter, driven by robust production schedules and increased content per vehicle [3]. - In contrast, European revenue declined approximately 14% quarter-over-quarter [3]. Gross Margin and Operating Income - The consolidated gross margin for the third quarter was 34.4%, up from 33.5% in the previous year [4]. - Core Gentex gross margin, excluding VOXX, was 34.9%, reflecting a 140 basis-point increase compared to the third quarter of 2024 [4]. - Consolidated operating income was $122.3 million, down from $125.7 million in the same period last year [5]. Revenue Breakdown - Gentex Automotive reported net sales of $558 million, down from $596.5 million a year earlier, primarily due to a decline in auto-dimming mirror shipments in Europe and China [6]. - The Other segment reported sales of $12.3 million, slightly up from $12 million, including products like dimmable aircraft windows and medical devices [6]. - VOXX contributed $84.9 million in sales as integration efforts continued [7]. Outlook - The company narrowed its fiscal 2025 sales outlook to $2.5 billion–$2.6 billion, compared to the previous range of $2.44 billion–$2.61 billion [8]. - Full-year production in primary markets is expected to decline by 1% year-over-year, with North America projected to decrease approximately 2% compared to 2024 [8]. Market Context - The third quarter reflects ongoing economic challenges, including mix weakness in Europe, Japan, and Korea, as well as headwinds in China due to tariffs [9]. - Gentex shares were down 5.74% at $24.81 at the time of publication [9].