Fire protection company Gentex Corporation GNTX shares are trading higher after the company reported third-quarter earnings per share of 53 cents, beating the street view of 49 cents.
Quarterly revenues of $608.53 million, beating the analyst consensus of $592.14 million.
For the third quarter, the gross margin was 33.5% versus 33.2% a year ago due to the higher revenue levels and purchasing cost reductions.
Operating income was reported at $125.7 million, while net income totaled $122.5 million, marking a 17% increase year over year.
Global light vehicle production declined by 5% in the third quarter compared to the third quarter of 2023.
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“During the third quarter of 2024, light vehicle production weakened across all major regions, but especially in our primary markets,” said Gentex President and CEO Steve Downing.
“The production declines resulted in a sales shortfall of approximately $25 – $30 million for the quarter, but despite that weakness in our end markets, we were able to outperform our primary markets by 12%.”
Outlook: Gentex has revised its fiscal year 2024 outlook, now expecting net sales to be between $2.35 billion and $2.40 billion ($2.386 billion estimate), compared to the previous guidance of $2.40 billion to $2.50 billion.
The company also projects a gross margin of 33.5% to 34.0%, down from the prior forecast of 34% to 34.5%.
Gentex is updating calendar year 2025 revenue estimates to approximately $2.45 billion – $2.55 billion (prior view: $2.6 billion – $2.7 billion).
Price Action: GNTX shares are trading higher by 4.89% to $31.11 at last check Friday.
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