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Mar 31, 2021
Gentex Q1 2021 Earnings Report
Gentex's financial performance increased in Q1 2021, driven by sales growth and improved gross margins.
Key Takeaways
Gentex Corporation reported a 7% increase in net sales, reaching $483.7 million, and a 27% increase in net income to $113.5 million for the first quarter of 2021. Earnings per diluted share rose by 28% to $0.46. The results were achieved despite part shortages that negatively impacted vehicle production levels.
Net sales increased by 7% to $483.7 million compared to Q1 2020.
Gross profit margin improved by 340 basis points to 37.9% compared to Q1 2020.
Net income increased by 27% to $113.5 million compared to Q1 2020.
Earnings per diluted share increased by 28% to $0.46 compared to Q1 2020.
Forward Guidance
The Company is making no changes to its previously provided guidance for calendar year 2021. Revenue is expected to be $1.94 - $2.02 billion, gross margin 39% - 40%, operating expenses $210 - $220 million, tax rate 16% - 18%, capital expenditures $85 - $95 million, and depreciation & amortization $105 - $110 million.
Positive Outlook
- Forecast for calendar year 2021 remains strong despite the supply chain issues.
- Industry dynamics currently point to improved light vehicle production for the second half of 2021.
- Continued recovery of light vehicle production into calendar year 2022 is expected.
- Combination of launch cadence, product mix and overall program awards provide confidence about the future growth rate and health of the business.
- Employees have been able to adapt to each situation.
Challenges Ahead
- Supply chain issues are continuing to impact the current vehicle production environment.
- These issues create instability in the short term.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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