Gentex Q3 Earnings Miss Estimates, 2025 Revenue Guidance Raised

Gentex Corporation’s GNTX third-quarter 2025 adjusted earnings per share (EPS) of 46 cents missed the Zacks Consensus Estimate of 47 cents while decreasing 13.2% year over year.This Zeeland-based automotive products supplier reported net sales of $655.2 million, which lagged the Zacks Consensus Estimate of $674 million but increased 8% from the year-ago period. The company recorded a gross margin of 34.4%, reflecting an increase of 90 basis points from the third 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 $558 million in the third quarter, down from $596.5 million reported in the year-ago quarter and missed our estimate of $587.5 million. In the reported quarter, auto-dimming mirror shipments in North America’s market remained flat at 3,830,000 units. Shipments fell 12% year over year in the international markets to 7,416,000 units. Total shipments declined 8% to 11,246,000 units.Gentex’s Other net sales, which include dimmable aircraft windows, fire protection products and medical products, increased from the year-ago quarter’s $12 million to $12.5 million.The company completed VOXX’s acquisition on April 1, 2025. In the third quarter, VOXX recorded sales of $84.9 million.GNTX’s Financial TidbitsTotal operating expenses rose 31.3% year over year to $102.84 million in the third quarter of 2025. Engineering and R&D expenses increased to $52.63 million from $48.23 million recorded in the corresponding quarter of 2024. SG&A expenses increased to $49.69 million from $30.11 million recorded in the corresponding quarter of 2024.GNTX paid a dividend of 12 cents per share in the quarter. Gentex repurchased 1 million shares of its common stock in the third quarter at an average price of $28.18 per share. As of Sept. 30, 2025, the company had nearly 39.6 million shares authorized for repurchase, including its latest share repurchase plan. Gentex had cash and cash equivalents of about $178.6 million as of Sept. 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 $2.5-$2.6 billion, up from previous guidance of $2.44-$2.61 billion. Gentex expects 2025 sales from the primary market in the range of $2.14-$2.15 billion compared to the previous estimated range of $2.10-$2.20 billion. It now expects sales from China’s market in the range of $135-$145 million, up from the previous expectation of $100-$125 million. Additionally, the VOXX segment sales are expected in the range of $250-$275 million, up from the previous expectation of $240-$280 million.Gentex’s (stand-alone) gross margin is projected in the band of 34.25-34.75%, up from the previous estimate of 34-34.5%. Capital expenditure is anticipated between $115 million and $125 million compared to the previous expected range of $100-$125 million. Operating expenses are estimated in the band of $305-$310 million compared to the prior estimate of $300-$310 million.GNTX’s Zacks Rank & Key PicksGNTX currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the auto space are Mobileye Global Inc. MBLY, Autoliv, Inc. ALV and Standard Motor Products, Inc. SMP. Each carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for MBLY’s fiscal 2025 earnings implies year-over-year growth of 36%. EPS estimates for 2025 and 2026 have improved a cent in the past 60 and 30 days, respectively.The Zacks Consensus Estimate for ALV’s fiscal 2025 earnings implies year-over-year growth of 13.46%. EPS estimates for fiscal 2025 and 2026 have improved 2 cents and 5 cents, respectively, in the past seven days.The Zacks Consensus Estimate for SMP’s 2025 sales and earnings implies year-over-year growth of 20.94% and 18.61%, respectively. The EPS estimate for 2025 has improved 5 cents in the past 60 days. The 2026 EPS estimate improved 2 cents in the past 30 days.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.See "2nd Wave" AI 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 Autoliv, Inc. (ALV): Free Stock Analysis Report Standard Motor Products, Inc. (SMP): Free Stock Analysis Report Gentex Corporation (GNTX): Free Stock Analysis Report Mobileye Global Inc. (MBLY): 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