- Gentex Corp (NASDAQ:GNTX) reported a first-quarter FY22 sales decline of 3.2% year-on-year to $468.25 million, beating the consensus of $433.50 million.
- Automotive net sales declined 3.7% to $458 million. Auto-dimming mirror unit shipments fell 7%.
- Global light vehicle production decreased by approximately 5% Y/Y. Light vehicle production in its primary regions of Europe, North America, Japan/Korea, and China fell 11% on a quarter-over-quarter basis.
- EPS of $0.37 topped the analyst consensus of $0.32.
- Gross profit margin of 34.3% contracted 360 basis points Y/Y due to raw material cost increases, elevated freight expenses, and labor cost increases.
- Operating expenses rose by 15% to $57.1 million. The operating margin was 22.1%, and the operating income fell 22.7% to $103.3 million.
- The company held $287 million in cash and equivalents as of March 31, 2022.
- "While the inflationary aspects of our business will continue to be a challenge over the next several quarters, we believe our recipe of out-growth versus the underlying vehicle production market will create record sales levels that will allow us to leverage our overhead to help offset some of the cost increases we have seen recently," said CEO Steve Downing.
- Outlook: Gentex did not change its previously provided guidance for the calendar year 2022.
- The company sees 2022 revenue of $1.87 billion - $2.02 billion and gross margin of 35% - 36%.
- Gentex expects 2023 revenue growth of approximately 15% - 20% above the 2022 revenue guidance.
- Price Action: GNTX shares are trading higher by 4.90% at $30.00 in premarket on the last check Friday.
