Shares of Gentex, a leading car-safety technology company based in Zeeland, Michigan, saw a significant boost after reporting fourth-quarter results that surpassed analysts' estimates. The stock rose 7.2% to reach $34.10 during Friday trading, marking its largest percent rise since April 2020 and inching closer to a 52-week high. Over the past three months, shares have climbed 21%.
In the fourth quarter, Gentex experienced a robust 19% increase in sales, reaching $589.1 million. This figure not only exceeded Gentex's guidance but also surpassed the $563.4 million forecast by analysts. The company's outstanding performance continued into its profit margins as well, reporting a profit of $116.9 million, or 50 cents per share, compared to $86.2 million, or 37 cents per share, in the same period last year. Analysts polled by FactSet had anticipated a per-share profit of 45 cents.
This exceptional performance was largely attributed to the better-than-expected production of North American light vehicles. Gentex's primary markets saw a 6% increase in production on a sequential basis, surpassing the projected growth rate of 4%. These positive results have instilled confidence in Gentex's outlook for the future.
Gentex has set revenue guidance in the range of $2.45 billion to $2.55 billion for 2024. However, analysts polled by FactSet are even more optimistic, expecting revenue to reach $2.72 billion. Despite an overall anticipated decline of 1% in light vehicle production for 2024, Gentex remains confident in its ability to outperform the underlying market in revenue growth. The company's focus on gross margin improvement is expected to further strengthen its position in the industry.
With its strong fourth-quarter results and positive outlook, Gentex continues to impress investors and analysts alike.
