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 grew significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded significantly.
Margins shrank across the board.
Gentherm notched revenue of $160.5 million. The four analysts polled by S&P Capital IQ expected to see net sales of $149.7 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $136.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at $0.16. The four earnings estimates compiled by S&P Capital IQ predicted $0.25 per share. Non-GAAP EPS of $0.16 for Q2 were 33% higher than the prior-year quarter's $0.12 per share. GAAP EPS of $0.15 for Q2 were 25% higher than the prior-year quarter's $0.12 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 25.0%, 10 basis points worse than the prior-year quarter. Operating margin was 5.5%, 100 basis points worse than the prior-year quarter. Net margin was 3.4%, 70 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $154.8 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $611.2 million. The average EPS estimate is $1.09.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 235 members out of 247 rating the stock outperform, and 12 members rating it underperform. Among 51 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 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 $22.33.
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