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Dec 31, 2022
Gentex Q4 2022 Earnings Report
Gentex's Q4 2022 earnings reflected an increase in net sales and earnings per share compared to Q4 2021.
Key Takeaways
Gentex Corporation reported an 18% increase in net sales for Q4 2022, reaching $493.6 million, and earnings per diluted share of $0.37, compared to $0.35 in Q4 2021. The company's performance was driven by increased light vehicle production and cost recoveries, though gross margin was affected by rising raw material costs and unfavorable product mix.
Net sales increased by 18% to $493.6 million compared to Q4 2021.
Earnings per diluted share rose to $0.37, up from $0.35 in the same quarter last year.
Gross margin was 31.2%, impacted by higher raw material and manufacturing costs.
Automotive net sales increased to $482.9 million, compared to $409.6 million in Q4 2021.
Gentex
Gentex
Forward Guidance
The Company anticipates record revenue performance in 2023 and expects margins to begin the year in the range of the fourth quarter of 2022 margin profile and then improve as the year progresses, ultimately ending at a weighted average margin of 32 to 33% for 2023.
Positive Outlook
- Strong demand for products expected to result in record revenue performance for 2023.
- Focus on margin recovery throughout 2023 and 2024.
- Expect margins to begin the year in the range of the fourth quarter of 2022 margin profile.
- Margins are expected to improve as the year progresses.
- Targeting a weighted average margin of 32 to 33% for 2023.
Challenges Ahead
- Continued margin pressure expected for the first half of 2023.
- Potential lingering effects from supply and labor constraints could limit global light vehicle production growth rates.
- Customer order volatility.
- Supply and component constraints.
- Cost inflation in raw components, labor, and almost every other facet of the business.