Automotive mirror supplier Gentex posts 9% rise in 1st quarter earnings

Article by Christian A., on April 20, 2012

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%.

If you liked the article, share on:

Topics: gentex

Comments

Recommended

Lamborghini had been expected to refresh its entry-level model – the Lamborghini Huracan – in late 2018 or early 2019. But here is some good news for fans of the...
by - November 20, 2017
The Chevrolet Corvette will be turning 65 years old in 2018, and as part of the celebrations, the brand is introducing a special edition C7 – the Chevrolet Corvette Carbon...
by - November 19, 2017
Tesla revealed that with its new Semi, truck drivers can expect better experience especially with heightened safety and the lower cost of transporting cargo. Indeed, the cabin of the new...
by - November 19, 2017
November 17 is considered a very special day for Tesla, as this is the day that they revealed the highly anticipated Tesla Semi. But Elon Musk did not think the...
by - November 17, 2017
More details have emerged about the new sixth generation of the BMW M3 just as the German premium practically announced the end of the current-gen 3 Series with the unveiling...
by - November 17, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries