Gentex Corporation (NASDAQ: GNTX) has reported its financial results for the third quarter of 2024, showcasing significant growth and resilience despite challenges in the light vehicle production landscape. Here are the key details:
-
Net sales for the third quarter of 2024 reached a new quarterly record of $608.5 million, marking a 6% increase from the same period in 2023, despite a 5% decline in global light vehicle production.
-
Gross profit margin improved to 33.5%, up by 60 basis points from the second quarter of 2024.
-
Income from operations was reported at $125.7 million, with net income reaching $122.5 million, reflecting a notable 17% increase from the third quarter of 2023.
-
Earnings per diluted share stood at $0.53, marking an 18% increase from the same period in 2023.
-
The company repurchased 3.2 million shares of its common stock during the quarter.
-
Automotive net sales in the third quarter of 2024 were $596.5 million, compared to $564.5 million in the third quarter of 2023, with auto-dimming mirror unit shipments decreasing by 3%.
-
Other net sales, including dimmable aircraft windows and fire protection products, were $12.0 million, with fire protection sales increasing by $1.8 million and dimmable aircraft window sales decreasing by $1.9 million compared to the third quarter of 2023.
-
The company recorded its first official sales of medical devices, totaling $0.8 million from shipments of the previously acquired esight go product line and business.
Looking ahead, Gentex Corporation recalibrated its guidance for calendar year 2024, with revenue estimates adjusted to $2.35 * $2.40 billion and gross margin expected to range from 33.5% to 34.0%. Additionally, capital expenditures were revised to $150 * $175 million, and depreciation & amortization estimates were updated to $90 * $95 million.
Despite the challenges posed by the evolving light vehicle production environment, the company remains confident in its ability to achieve its targeted gross margin of 35 * 36%, albeit likely extending into the 2025 calendar year.
Gentex Corporation's ability to outperform its primary markets by 12% during the third quarter underscores its resilience and adaptability in navigating industry headwinds, setting the stage for continued growth and success in the coming quarters. The market has reacted to these announcements by moving the company's shares 5.2% to a price of $31.19. If you want to know more, read the company's complete 8-K report here.
