The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Gentherm beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased.
Margins grew across the board.
Gentherm reported revenue of $141.1 million. The five analysts polled by S&P Capital IQ foresaw revenue of $136.9 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $125.6 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 $0.09. The four earnings estimates compiled by S&P Capital IQ predicted $0.17 per share. GAAP EPS were $0.09 for Q3 versus -$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.
For the quarter, gross margin was 26.1%, 160 basis points better than the prior-year quarter. Operating margin was 7.2%, 220 basis points better than the prior-year quarter. Net margin was 2.9%, 200 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $147.4 million. On the bottom line, the average EPS estimate is $0.23.
Next year's average estimate for revenue is $550.3 million. The average EPS estimate is $0.73.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 231 members out of 243 rating the stock outperform, and 12 members rating it underperform. Among 53 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 give Gentherm a green thumbs-up, and one 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 $19.33.
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