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What: Shares of Gentherm Inc (NASDAQ:THRM) were rising like hot air today, up as much as 13% after posting a strong first-quarter earnings report.
So what: The maker of car seat-warmers and other automotive accessories saw revenues jump 31% to $193.9 million as earnings per share nearly doubled to $0.47. Both figures easily beat Wall Street estimates at $173.2 million and $0.29, respectively. The strong performance was led by its Climate Control Seats division, which grew 46%, delivering the largest portion of revenue for the first time since its acquisition in 2011.
Now what: While CEO Daniel Coker called the quarter "extraordinary," he did caution that comparisons would be tougher in the second half of the year, so Gentherm's growth rate would not be as strong. Still, management lifted its full-year revenue guidance to at least 15% growth, or $761 million, ahead of estimates at $743.6 million. The company's standout quarter seems like the latest evidence of the improving economy at home and Europe, as its seat-warmers are generally luxury items, and sales are tied to the highly cyclical auto market. I'd expect strong results for the rest of the year as the economic recovery continues.