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What: Shares of automotive and aircraft component maker Gentex (Nasdaq: GNTX ) got crushed today by as much as 32% after the company reported earnings.
So what: Revenue increased 15% to $280.3 million in the second quarter, resulting in net income of $40.8 million, or $0.28 per share. Those figures slimly missed Street expectations of $283 million in revenue and a $0.29 per share profit. Perhaps more troubling was the drop in gross margins.
Now what: Gross margins shrank to 33.1%, down sequentially from 35.2%. The company attributed this decrease to price reductions and changes in the product mix, which was only partially offset by the company's own cost reductions. CEO Fred Bauer conceded, "While we are pleased with the growth in net sales in the second quarter, we recognize that we have work to do to improve the gross profit margin." Guidance for the third quarter expects sales to be between flat to up 5% year over year.
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