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Gentex beats; gives bright revenue forecast

The Associated Press

NEWS: Gentex Corp., which makes automatic-dimming rearview mirrors and other automotive electronics, reported Tuesday that its fiscal third-quarter net income jumped 33 percent on improved sales. The quarter beat market expectations and it gave a better-than-expected revenue forecast, which sent its shares up in trading.

DETAILS: The company, based in Zeeland, Mich., also makes dimmable aircraft windows and fire protection products.

Gentex said that lower purchasing costs and better mix of products sold benefited its profit margins, which was partially offset by some price reductions.

NUMBERS: The company earned $55.5 million, or 38 cents per share, for the quarter that ended Sept. 30. That is up from $41.9 million, or 29 cents per share, in the same quarter last year. Its total revenue increased 8 percent to $288.6 million from $268.2 million.

Analysts polled by FactSet were anticipating earnings of 32 cents per share on revenue of $275.2 million.

FUTURE: Gentex said that revenue for its fourth quarter will increase 20 to 25 percent over the prior year, helped in part by a recent acquisition. Based on its revenue of $260.3 million in its fourth quarter last year, it is anticipating revenue between $312.4 million and $325.4 million. Analysts had forecast revenue of $283.9 million.

STOCK: Shares jumped $1.17, or 4.2 percent, to $28.76 in afternoon trading, Its shares have risen 44 percent in the past year.