Gentex Corp (GNTX) Reports 17% Increase in Q3 2023 Net Sales
Net sales for Q3 2023 reached $575.8 million, marking a 17% increase compared to Q3 2022.
Net income for the same period was $104.7 million, a 44% increase compared to Q3 2022.
Unit shipments increased by 10% compared to Q3 2022, reaching 12.6 million.
Gross profit margin was 33.2%, a 340 basis point increase from Q3 2022.
Released on October 27, 2023, Gentex Corp (NASDAQ:GNTX)'s Q3 2023 earnings report shows a significant increase in net sales and net income compared to the same period in 2022. The company, a leading supplier of digital vision, connected car, dimmable glass, and fire protection technologies, reported net sales of $575.8 million, a 17% increase compared to Q3 2022. Net income for the same period was $104.7 million, a 44% increase compared to Q3 2022.
Financial Highlights
For Q3 2023, Gentex Corp (NASDAQ:GNTX) reported a gross profit margin of 33.2%, an increase of 340 basis points from Q3 2022. This increase was attributed to higher sales levels, improvements in freight and tariff-related costs, cost recoveries, price increases from customers, and improvements in product mix. However, these improvements were partially offset by increased raw material costs, labor costs, and scrap and yield loss increases compared to Q3 2022.
Operating expenses for Q3 2023 increased by 14% to $69.0 million, primarily due to staffing and engineering-related professional fees. Income from operations was $122.4 million, a 41% increase compared to Q3 2022.
Company Performance and Future Estimates
President and CEO, Steve Downing, commented on the company's performance, stating,
While the last few years have been negatively impacted by labor and supply chain issues that limited our ability to meet customer demand, the last several quarters have improved significantly. The growth in the third quarter of 2023 is a continuation of the unit and content growth we experienced during the first half of this year, and is indicative of the success of our technology platforms, including the launch rates and increased take rates of our Full Display Mirror products."
Looking ahead, the company expects light vehicle production to increase by 4% for Q4 2023 compared to Q4 2022. For the full calendar year 2023, light vehicle production is forecasted to increase by 9% compared to 2022. Based on these forecasts, the company expects calendar year 2024 revenue of approximately $2.45 - $2.55 billion.
Share Repurchases and Other Financial Details
In Q3 2023, Gentex Corp (NASDAQ:GNTX) repurchased 0.8 million shares of its common stock at an average price of $32.41 per share. As of September 30, 2023, the company has approximately 18.0 million shares remaining available for repurchase under its previously announced share repurchase plan.
Automotive net sales in Q3 2023 were $564.5 million, a 17% increase compared to Q3 2022. Other net sales, which include dimmable aircraft windows and fire protection products, were $11.3 million, compared to $12.7 million in Q3 2022.
Explore the complete 8-K earnings release (here) from Gentex Corp for further details.
This article first appeared on GuruFocus.
