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Sep 30, 2020
Gentex Q3 2020 Earnings Report
Gentex reported Q3 2020 financial results with net sales of $474.6 million and EPS of $0.48.
Key Takeaways
Gentex Corporation reported net sales of $474.6 million for the third quarter of 2020, a 1% decrease compared to the third quarter of 2019. Earnings per diluted share increased by 9% to $0.48. The company's gross margin improved to 39.7%, and operating income increased by 8% to $138.9 million.
Net sales reached $474.6 million, the second-highest in company history.
Gross margin improved to 39.7%, a 200 basis point increase year-over-year.
Earnings per diluted share increased by 9% to $0.48.
Cash flow from operations was $138.6 million, and 1.2 million shares were repurchased.
Gentex
Gentex
Gentex Revenue by Segment
Revenue by Segment
Other Products Revenue
CapyFin.com Forward Guidance
The Company estimates that net sales for the second half of 2020 will be between $940 million and $960 million. The Company currently estimates that revenue for calendar year 2021 will be approximately 15 - 20% higher than estimated revenue in calendar year 2020.
Positive Outlook
- Net Sales: $940m - $960m (2nd Half 2020)
- Gross Margin: 39% - 40% (2nd Half 2020)
- Tax Rate: 16% - 17% (2nd Half 2020)
- Revenue for calendar year 2021 will be approximately 15 - 20% higher than estimated revenue in calendar year 2020.
- Capital Expenditures: $25m - $30m (2nd Half 2020)
Challenges Ahead
- Light vehicle production in the Company's primary markets are expected to be down 2% for the fourth quarter of 2020 versus the same period last year.
- For calendar year 2020, light vehicle production in the Company's primary markets is expected to be down 16% when compared to calendar year 2019.
- Operating Expenses: $95m - $100m (2nd Half 2020)
- Dimmable aircraft window sales decreased by 52% for the third quarter of 2020 when compared to the third quarter of 2019.
- Uncertainty regarding macroeconomic conditions, underlying overall consumer demand for light vehicles worldwide, and the continued impact from the COVID-19 pandemic.