Earnings Preview: Gentherm

Gentherm THRM will release its quarterly earnings report on Wednesday, 2024-10-30. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate Gentherm to report an earnings per share (EPS) of $0.66.

Anticipation surrounds Gentherm's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Past Earnings Performance

The company's EPS beat by $0.05 in the last quarter, leading to a 1.96% drop in the share price on the following day.

Here's a look at Gentherm's past performance and the resulting price change:

Performance of Gentherm Shares

Shares of Gentherm were trading at $41.7 as of October 28. Over the last 52-week period, shares are up 5.48%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Take on Gentherm

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Gentherm.

Analysts have given Gentherm a total of 1 ratings, with the consensus rating being Neutral. The average one-year price target is $56.0, indicating a potential 34.29% upside.

Peer Ratings Comparison

In this comparison, we explore the analyst ratings and average 1-year price targets of XPEL, Dana and Fox Factory Hldg, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• Analysts currently favor an Buy trajectory for XPEL, with an average 1-year price target of $58.0, suggesting a potential 39.09% upside.
• The prevailing sentiment among analysts is an Neutral trajectory for Dana, with an average 1-year price target of $13.33, implying a potential 68.03% downside.
• As per analysts' assessments, Fox Factory Hldg is favoring an Neutral trajectory, with an average 1-year price target of $46.75, suggesting a potential 12.11% upside.

Overview of Peer Analysis

The peer analysis summary offers a detailed examination of key metrics for XPEL, Dana and Fox Factory Hldg, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

Gentherm is positioned in the middle among its peers for revenue growth, with one peer showing the highest growth rate. In terms of gross profit, Gentherm ranks second highest. However, Gentherm has the highest return on equity compared to its peers.

About Gentherm

Gentherm Inc is an automotive parts manufacturer. The business activities of the group function through the Automotive and Medical segments. The vast majority of the firm's revenue comes from the Automotive segment, which includes automotive climate comfort systems, automotive cable systems, battery performance solutions and automotive electronics and software systems. The medical segment is comprised of the results from the patient temperature management business in the medical industry. Its geographical segments are the United States, China, South Korea, Germany, Japan, the Czech Republic, and other countries.

Breaking Down Gentherm's Financial Performance

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3 months period, Gentherm showcased positive performance, achieving a revenue growth rate of 0.9% as of 30 June, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Gentherm's net margin is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 5.02%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Gentherm's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 2.93%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Gentherm's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 1.51%, the company may face hurdles in achieving optimal financial performance.

Debt Management: Gentherm's debt-to-equity ratio is below the industry average at 0.39, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for Gentherm visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.