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Dec 31, 2023
Gentex Q4 2023 Earnings Report
Reported record quarterly sales and improved gross profit margin.
Key Takeaways
Gentex Corporation reported a strong fourth quarter in 2023, marked by record net sales of $589.1 million, a 19% increase year-over-year. The company saw significant improvements in gross profit margin, income from operations, and net income, driven by price increases, cost recoveries, and efficient cost management.
Net sales reached a record $589.1 million, up 19% from Q4 2022.
Gross profit margin improved by 330 basis points to 34.5%.
Income from operations increased by 41% to $132.8 million.
Earnings per diluted share rose by 35% to $0.50.
Forward Guidance
Gentex provided revenue guidance for 2024 and 2025 based on light vehicle production forecasts from S&P Global Mobility. The company expects continued revenue growth and gross margin improvement.
Positive Outlook
- Revenue is projected between $2.45 and $2.55 billion for 2024.
- Gross margin is expected to be between 34% and 35% for 2024.
- Revenue is projected between $2.65 and $2.75 billion for 2025.
- Company anticipates outperforming the underlying market in revenue growth.
- Focus on cost control and gross margin improvement to achieve 35-36% gross margin by the end of 2024.
Challenges Ahead
- Operating expenses are estimated between $295 and $305 million for 2024.
- Estimated annual tax rate is projected between 16% and 18% for 2024.
- Capital expenditures are forecasted between $225 and $250 million for 2024.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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