Gentex Corp., a Michigan-based supplier of automotive mirrors, posted a 9% boost in earnings for the first quarter, thanks to the higher demand from the customers in Europe and North America. The company disclosed that it anticipates revenue to increase by 15% in the next three months compared with the same period last year.
Specifically, the company revealed that the quarterly net income increased to $46.3 million while revenues also climbed 16% to $290.7 million. On the other hand, the stock of Gentex decreased after the financial report, diving 16.01% to $21.35 at the close in New York.
Senior analyst Richard Kwas at Wells Fargo commented that the reported $286-million revenue was below the forecasted $294 million. He further stated that the quarterly conference call "did not provide much comfort to growth investors, which represent a big chunk of the holder base." He anticipated the second quarter estimates of the supplier to drop.
Typically, Gentex is one of the companies to post quarterly profits early. Despite being a relatively small supplier, some viewed its quarterly report as a tone-setter for the earnings-reporting period. Most of the results of Gentex were slightly lower or at par with the expectations of analysts.
Kwas said in the report that although the quarter was "OK", they expected an "upside potential" considering that production levels in North America were better than expected. According to Gentex, gross profit margin continued to be flat at 34.7% from the fourth quarter and decreased from 36% in the first quarter of 2011, primarily due to yearly customer price reductions, offset in a way by lower manufacturing costs. Interior mirror volume rose 17% year-over-year during the quarter to 4,735 units. U.S. shipments were up 21% while foreign shipments increased 14%.