Gentherm
The 10-second takeaway
For the quarter ended June 30 (Q2), Gentherm beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share improved.
Gross margins increased, operating margins shrank, and net margins improved.
Revenue details
Gentherm chalked up revenue of $136.2 million. The four analysts polled by S&P Capital IQ expected revenue of $133.4 million on the same basis. GAAP reported sales were 77% higher than the prior-year quarter's $77.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.12. The five earnings estimates compiled by S&P Capital IQ averaged $0.15 per share. GAAP EPS were $0.12 for Q2 against -$0.07 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 25.1%, 20 basis points better than the prior-year quarter. Operating margin was 6.5%, 60 basis points worse than the prior-year quarter. Net margin was 4.1%, 240 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $138.3 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $547.9 million. The average EPS estimate is $0.75.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 231 members rating the stock outperform and 13 members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 give Gentherm 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 Gentherm is outperform, with an average price target of $21.33.
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