Gentex Corporation’s GNTX first-quarter 2019 earnings per share were 40 cents, which beat the Zacks Consensus Estimate of 39 cents. In the year-ago quarter, the company’s bottom-line figure was 40 cents. Its net income declined to $104.3 million from $111.2 million in first-quarter 2018.
During the quarter under review, the company reported net sales of $468.6 million, beating the Zacks Consensus Estimate of $463 million. Moreover, the top line increased 1% from net sales of $465.4 million recorded in the first quarter of 2018.
Gentex Corporation Price, Consensus and EPS Surprise
Gentex Corporation Price, Consensus and EPS Surprise | Gentex Corporation Quote
Quarter in Detail
During the reported quarter, the company recorded gross margin of 36.2%, down from the year-ago quarter figure of 37.1%. The gross margin was adversely impacted by approximately 90 basis points due to impacts of tariffs.
During the quarter under review, auto-dimming mirror shipments in the North American market rose by 10% to 3.5 million and in the International market, it declined 3% to 7.2 million. In total, it rose by 1% year over year to 10.7 million.
Operating expenses during first-quarter 2019 were up 9% to $48 million from $44.1 million in first-quarter 2018.
During first-quarter 2019, the company repurchased 4.7 million common shares at an average price of $20.37 per share. As of Mar 31, 2019, Gentex had around 29.1 million shares remaining for repurchase.
Gentex had cash and cash equivalents of $221.7 million as of Mar 31, 2019, compared with $217 million as of Dec 31, 2018.
The company reiterated its guidance for 2019. It expects revenues of $1.83-$1.93 billion and operating expenses of $195-$200 million. Further, gross margin is anticipated to be 36-37% in the current year.
Zacks Rank & Stocks to Consider
Gentex currently carries a Zacks Rank #4 (Sell).
A few better-ranked stocks in the broader auto sector are Geely Automobile Holdings Ltd. GELYY, PACCAR Inc. PCAR and Fox Factory Holding Corp. FOXF. While Geely currently sports a Zacks Rank #1 (Strong Buy), PACCAR and Fox Factory carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Geely’ long-term growth rate is projected at 7%. Over the past three months, shares of the company have gained 28.5%.
PACCAR has an expected long-term growth rate of 8.4%. Shares of the company have gained 16.6% over the past three months.
Fox Factory has an expected long-term growth rate of 15.1%. Shares of the company have gained 29.5% over the past three months.
Radical New Technology Creates $12.3 Trillion Opportunity
Imagine buying Microsoft stock in the early days of personal computers… or Motorola after it released the world’s first cell phone. These technologies changed our lives and created massive profits for investors.
Today, we’re on the brink of the next quantum leap in technology. 7 innovative companies are leading this “4th Industrial Revolution” - and early investors stand to earn the biggest profits.
See the 7 breakthrough stocks now>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
PACCAR Inc. (PCAR) : Free Stock Analysis Report
Fox Factory Holding Corp. (FOXF) : Free Stock Analysis Report
Geely Automobile Holdings Ltd. (GELYY) : Free Stock Analysis Report
Gentex Corporation (GNTX) : Free Stock Analysis Report
To read this article on Zacks.com click here.