Gentex Q1 2024 Earnings Report
Key Takeaways
Gentex Corporation reported a record first quarter with net sales of $590.2 million, a 7% increase compared to Q1 2023. The company's gross profit margin increased to 34.3%, and net income rose by 11% to $108.2 million, resulting in earnings per diluted share of $0.47.
Net sales reached a record $590.2 million, a 7% increase year-over-year.
Gross profit margin improved by 260 basis points to 34.3%.
Income from operations increased by 14% to $129.3 million.
Earnings per diluted share rose by 12% to $0.47.
Gentex
Gentex
Forward Guidance
The company is maintaining its previously provided guidance for calendar year 2024, with revenue expected to be between $2.45 and $2.55 billion and gross margin between 34% and 35%. Calendar year 2025 revenue is expected to be approximately $2.65 - $2.75 billion.
Positive Outlook
- Company is on pace for record setting revenue in 2024 and 2025.
- Growth driven by expansion of product content including advanced feature growth and new electronic technologies.
- Product strategy is succeeding with customers and consumers.
- New technologies are beginning to generate revenue and profitability.
- Progress on the path toward improved profitability.
Challenges Ahead
- Light vehicle production weakened in primary markets versus the beginning of quarter forecast.
- Revenue levels were approximately $20 million lower than original expectations for the quarter.
- Operating expenses grew faster than sales for the quarter.
- Gross margin declined slightly from the fourth quarter of last year.
- A tremendous amount of work remains to be done this year as the company execute additional cost improvement initiatives