The 10-second takeaway
For the quarter ended March 31 (Q1), Gentex met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly, and GAAP earnings per share improved.
Margins dropped across the board.
Gentex booked revenue of $290.7 million. The nine analysts polled by S&P Capital IQ wanted to see revenue of $294.2 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $250.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.32. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.32 per share. GAAP EPS of $0.32 for Q1 were 10% higher than the prior-year quarter's $0.29 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.7%, 130 basis points worse than the prior-year quarter. Operating margin was 22.5%, 140 basis points worse than the prior-year quarter. Net margin was 15.9%, 100 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $288.5 million. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $1.18 billion. The average EPS estimate is $1.28.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 135 members rating the stock outperform and 15 members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Gentex a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Gentex is outperform, with an average price target of $30.86.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.