Why Shares of Gentherm Inc Were Heating Up Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Gentherm Inc  (NASDAQ: THRM  ) were rising like hot air today, up as much as 13% after posting a strong first-quarter earnings report. 

So what: The maker of car seat-warmers and other automotive accessories saw revenues jump 31% to $193.9 million as earnings per share nearly doubled to $0.47. Both figures easily beat Wall Street estimates at $173.2 million and $0.29, respectively. The strong performance was led by its Climate Control Seats division, which grew 46%, delivering the largest portion of revenue for the first time since its acquisition in 2011.   

Now what: While CEO Daniel Coker called the quarter "extraordinary," he did caution that comparisons would be tougher in the second half of the year, so Gentherm's growth rate would not be as strong. Still, management lifted its full-year revenue guidance to at least 15% growth, or $761 million, ahead of estimates at $743.6 million. The company's standout quarter seems like the latest evidence of the improving economy at home and Europe, as its seat-warmers are generally luxury items, and sales are tied to the highly cyclical auto market. I'd expect strong results for the rest of the year as the economic recovery continues. 

You don't want to miss this
The Economist compares this disruptive invention to the steam engine and the printing press. Business Insider says it's "the next trillion-dollar industry." And everyone from BMW, to Nike, to the U.S. Air Force is already using it every day. Watch The Motley Fool's shocking video presentation today to discover the garage gadget that's putting an end to the Made In China era... and learn the investing strategy we've used to double our money on these three stocks. Click here to watch now!


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2940393, ~/Articles/ArticleHandler.aspx, 7/31/2014 5:42:43 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement