Gentex Q4 2019 Earnings Report
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
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