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Jun 30, 2021
Gentex Q2 2021 Earnings Report
Gentex's financial performance surged in Q2 2021 due to increased sales and improved gross margins.
Key Takeaways
Gentex reported a significant increase in net sales, gross profit margin, and net income for the second quarter of 2021 compared to the COVID-19 impacted second quarter of 2020. Net sales increased by 86%, gross profit margin improved by 1,631 basis points, and net income saw an $88.9 million increase.
Net sales reached $428.0 million, an 86% increase year-over-year.
Gross profit margin improved to 35.4%, a 16.3 percentage point increase from Q2 2020.
Net income increased to $86.5 million, an $88.9 million increase compared to Q2 2020.
Earnings per diluted share were $0.36, compared to a loss of $0.01 per share in Q2 2020.
Forward Guidance
The Company’s current estimate is that net sales for the second half of 2021 will be between $970 million and $1.07 billion.
Positive Outlook
- Forecasted vehicle production volumes for the second half of 2021 represents a 9% increase in light vehicle production when compared to the first half of 2021
- The Company estimates that revenue for calendar year 2022 will be approximately 10% - 15% higher than the updated 2021 revenue estimates of $1.88 - $1.98 billion.
- Built up demand will provide strong revenue growth next year.
- The next 18 months has the potential to produce record level revenues and profitability for the Company
- Company expects orders to improve
Challenges Ahead
- Light vehicle production in the Company's primary markets is forecasted by IHS Markit to decrease 4% for the second half of 2021 versus the second half of 2020.
- The Company will continue to see headwinds to demand due to supply shortages that we believe will continue in the second half of 2021 and into the first half of 2022.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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