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Jun 30, 2024
Gentex Q2 2024 Earnings Report
Gentex reported a decrease in net sales and net income compared to the same quarter last year, impacted by weakened light vehicle production and unfavorable product mix.
Key Takeaways
Gentex Corporation reported a decrease in net sales to $572.9 million and net income to $86.0 million for Q2 2024, compared to $583.5 million and $109.2 million respectively in Q2 2023. The results were affected by lower light vehicle production and an unfavorable product mix. The company is updating its full year guidance based on these results and revised vehicle production forecasts.
Net sales decreased to $572.9 million compared to $583.5 million in the second quarter of 2023.
Earnings per diluted share were $0.37, down from $0.47 in the second quarter of 2023.
Gross margin was 32.9%, slightly lower than 33.1% in the second quarter of 2023, impacted by lower sales and unfavorable product mix.
The company repurchased 1.4 million shares of its common stock at an average price of $34.43 per share during the quarter.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
The Company updated its full year guidance for 2024 with revenue expected to be in the range of $2.40 to $2.50 billion, gross margin between 34% and 34.5%, operating expenses between $295 and $305 million, tax rate between 15% and 16%, capital expenditures between $175 and $200 million, and depreciation & amortization between $95 and $100 million. Revenue estimates for 2025 were updated to approximately $2.6 - $2.7 billion.
Positive Outlook
- Company continues to be on pace for record revenue in 2024 and 2025.
- Tremendous work has been accomplished on gross margin improvement plan.
- Fully expect to achieve a 35 – 36% margin for the Company.
- Forecast strong growth and profitability as we head into the second half of this year and prepare for 2025.
Challenges Ahead
- Recent changes to the light vehicle production environment impacted performance in the second quarter.
- Vehicle mix impacted performance in the second quarter.
- Regional mix impacted performance in the second quarter.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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