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Dec 31, 2019
Gentex Q4 2019 Earnings Report
Gentex's Q4 2019 earnings were impacted by the GM strike and global vehicle production decline, but gross margin exceeded expectations.
Key Takeaways
Gentex Corporation reported a decrease in revenue for Q4 2019 compared to Q4 2018, primarily due to the General Motors strike and a decline in global light vehicle production. However, the company's gross profit margin was higher than expected. Earnings per diluted share were $0.39, compared to $0.41 in the same quarter of the previous year. The company repurchased 2.4 million shares during the quarter.
Revenue declined by 2% due to the GM strike and lower global vehicle production.
Gross profit margin was 36.5%, exceeding the company's forecast.
Earnings per diluted share decreased to $0.39 from $0.41 year-over-year.
The company repurchased 2.4 million shares of its common stock.
Gentex
Gentex
Gentex Revenue by Segment
Revenue by Segment
Automotive Revenue
CapyFin.comOther Products Revenue
CapyFin.com Forward Guidance
The company provided revenue guidance for 2020, projecting revenue between $1.91 billion and $2.0 billion. They also anticipate a gross margin between 36% and 37%.
Positive Outlook
- Increased penetration rates of core mirror products
- Continued growth of Full Display Mirror product
- Launches of new Integrated Toll Module product
- Commitment to investing heavily in new technology
- Targeted growth rate of 3% - 8% per year
Challenges Ahead
- Global light vehicle production appears to be stabilizing
- Market conditions continue to be difficult
- Tariffs remain on incoming materials
- Tariffs on exports into the China market
- Headwinds to growth in the domestic China market
Revenue & Expenses
Visualization of income flow from segment revenue to net income