What happened
Gentherm (THRM 0.68%), a specialty auto parts and accessories maker, saw its stock get thrown in reverse on Hump Day. The company's shares tumbled by nearly 7% on the day, a far worse showing than the S&P 500 index's 0.2% drop. That was hardly surprising, as Gentherm missed badly on the bottom line with its latest quarterly earnings report.
So what
For its fourth quarter of 2022, Gentherm actually reported a hot increase in sales. Total product revenue was just north of $343 million, for a 38% year-over-year improvement. The big catch was that non-GAAP (adjusted) net income traveled in the opposite direction, falling by 23% to $15.6 million.
Compounding that, the bottom-line figure didn't reach the average analyst estimate. Collectively, pundits following Gentherm stock were expecting the company to post a far better adjusted net income figure of $0.64 per share. At least the company topped the revenue estimate, albeit only slightly. On average, prognosticators were modeling $342.5 million for that line item.
Gentherm said that throughout 2022, it operated in an environment of unfavorable macroeconomic developments and what it termed "challenging industry dynamics." Despite this, it closed a pair of acquisitions and managed to post a new all-time record for annual revenue.
Now what
Gentherm might set a fresh high for 2023; its guidance for the year calls for product revenue of between $1.45 billion and $1.55 billion. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) should come in at 11.5% to 13.5% of product revenue. The company did not provide a net income forecast.
