The Gory Details on Gentex's Double Fumble

Gentex (NAS: GNTX) reported earnings on Jan. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Gentex missed estimates on revenues and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly, and GAAP earnings per share improved significantly.

Margins dropped across the board.

Revenue details
Gentex booked revenue of $260.3 million. The nine analysts polled by S&P Capital IQ expected sales of $273.4 million. Sales were 17% higher than the prior-year quarter's $222.1 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.28. The 11 earnings estimates compiled by S&P Capital IQ averaged $0.30 per share on the same basis. GAAP EPS of $0.28 for Q4 were 7.6% higher than the prior-year quarter's $0.26 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 34.7%, 110 basis points worse than the prior-year quarter. Operating margin was 21.4%, 140 basis points worse than the prior-year quarter. Net margin was 15.5%, 110 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $289.8 million. On the bottom line, the average EPS estimate is $0.34.

Next year's average estimate for revenue is $1.21 billion. The average EPS estimate is $1.38.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 130 members out of 145 rating the stock outperform, and 15 members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 28 give Gentex a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Gentex is outperform, with an average price target of $32.96.

At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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