The 10-second takeaway
For the quarter ended March 31 (Q1), Gentherm beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share increased significantly. GAAP earnings per share expanded significantly.
Margins grew across the board.
Gentherm notched revenue of $148.1 million. The four analysts polled by S&P Capital IQ predicted revenue of $138.2 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $129.5 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 $0.27. The four earnings estimates compiled by S&P Capital IQ forecast $0.20 per share. Non-GAAP EPS of $0.27 for Q1 were 145% higher than the prior-year quarter's $0.11 per share. GAAP EPS of $0.24 for Q1 were 118% higher than the prior-year quarter's $0.11 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 26.4%, 130 basis points better than the prior-year quarter. Operating margin was 7.4%, 70 basis points better than the prior-year quarter. Net margin was 5.8%, 200 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $147.7 million. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $603.6 million. The average EPS estimate is $1.02.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 233 members out of 245 rating the stock outperform, and 12 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 52 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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