Gentex Q2 Earnings Surpass Estimates, 2025 Guidance Raised

Gentex Corporation’s GNTX second-quarter 2025 adjusted earnings per share (EPS) of 47 cents beat the Zacks Consensus Estimate of 40 cents while increasing 27.03% year over year.This Zeeland-based automotive products supplier reported net sales of $657.9 million, which beat the Zacks Consensus Estimate of $584 million and increased 14.8% from the year-ago period. The company recorded a gross margin of 34.2%, reflecting an increase of 130 basis points from the second quarter of 2024 due to a reduction in purchasing costs, improved mix and operational efficiencies.Gentex Corporation Price, Consensus and EPS Surprise Gentex Corporation price-consensus-eps-surprise-chart | Gentex Corporation QuoteSegmental Performance of GNTXThe Automotive segment’s net sales, contributing the most to Gentex’s revenues, totaled $566.5 million in the second quarter, up from $559.3 million reported in the year-ago quarter and beat our estimate of $548.9 million. In the reported quarter, auto-dimming mirror shipments in North America’s market decreased 8% to 3,746,000 units. Shipments fell 4% year over year in the international markets to 7,830,000 units. Total shipments declined 5% to 11,575,000 units.Gentex’s Other net sales, which include dimmable aircraft windows, fire protection products and medical products, decreased from the year-ago quarter’s $13.6 million to $12.5 million and missed our estimate of $17.1 million.The company completed VOXX’s acquisition on April 1, 2025. In the second quarter, VOXX recorded sales of $78.8 million.GNTX’s Financial TidbitsTotal operating expenses rose 43.8% year over year to $106.77 million in second-quarter 2025. Engineering and R&D expenses increased to $51.47 million from $44 million recorded in the corresponding quarter of 2024. SG&A expenses increased to $48.52 million from $29.67 million recorded in the corresponding quarter of 2024.GNTX paid a dividend of 12 cents per share in the quarter. Gentex repurchased 5.7 million shares of its common stock at an average price of $22.13 per share. As of July 25, 2025, the company had nearly 40.6 million shares authorized for repurchase, including its latest share repurchase plan. Gentex had cash and cash equivalents of about $119.8 million as of June 30, 2025.GNTX Updates 2025 GuidanceGentex has revised its guidance for 2025, after consolidating the VOXX merger. It expects consolidated revenues in the range of $2.44-$2.61 billion, up from previous guidance of $2.15-$2.32 billion.Gentex still expects 2025 sales from the primary market in the range of $2.10-$2.20 billion. However, it now expects sales from China’s market in the range of $100-$125 million, up from the previous expectation of $50-$120 million. Additionally, the VOXX segment sales are expected in the range of $240-$280 million.Gentex (stand-alone) gross margin is projected in the band of 34-34.5%, up from the previous estimate of 33-34%. Capital expenditure is anticipated between $100 million and $125 million. Operating expenses are estimated in the band of $300-$310 million.GNTX’s Zacks Rank & Other Stocks to ConsiderGNTX carries a Zacks Rank #2 (Buy) at present.Some other top-ranked stocks in the auto space are Ferrari N.V. RACE, Valmont Industries VMI and XPeng Inc. XPEV. While RACE sports a Zacks Rank #1 (Strong Buy) at present, GNTX & XPEV carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for RACE’s fiscal 2025 sales and earnings indicates year-over-year growth of 13.6% and 12.1%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 5 cents each in the past 30 days.The Zacks Consensus Estimate for VMI’s 2025 sales implies year-over-year growth of 0.53%. EPS estimates for 2025 and 2026 have improved 37 cents and 60 cents, respectively, in the past seven days.The Zacks Consensus Estimate for XPEV’s 2025 sales and earnings indicates year-over-year growth of 102% and 66.7%, respectively. EPS estimates for 2025 have improved 7 cents in the past 90 days and the same for 2026 has increased a penny in the past 60 days.      5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.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 Valmont Industries, Inc. (VMI): Free Stock Analysis Report Gentex Corporation (GNTX): Free Stock Analysis Report Ferrari N.V. (RACE): Free Stock Analysis Report XPeng Inc. Sponsored ADR (XPEV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks