Stock Monitor: Modine Manufacturing Post Earnings Reporting
LONDON, UK / ACCESSWIRE / February 06, 2018 / Active-Investors.com has just released a free earnings report on Gentex Corp. (NASDAQ: GNTX). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/'symbol=GNTX. The Company reported its fourth quarter fiscal 2017 (Q4 2017) and full fiscal year 2017 (FY17) operating and financial results on January 26, 2018. The Zeeland, Michigan-based manufacturer of automotive automatic-dimming rearview mirrors and other products outperformed top- and bottom-line expectations. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is currently working on the research report for Modine Manufacturing Company (NYSE: MOD), which also belongs to the Consumer Goods sector as the Company Gentex. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Gentex most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/'symbol=GNTX
Earnings Highlights and Summary
For the fourth quarter of 2017, Gentex reported net sales of $459.6 million, reflecting an increase of 9% compared to $419.9 million for Q4 2016. The increase was primarily driven by a 13% rise in auto-dimming interior and exterior rearview mirror shipments. The Company's revenue numbers topped analysts' estimates of $448.2 million.
For FY17, Gentex's net sales climbed 7% to $1.79 billion compared to $1.68 billion for FY16, primarily as a result of a 9% increase in auto-dimming interior and exterior mirror unit shipments.
During Q4 2017, Gentex's gross profit margin was 39.2% compared to 40.3% in Q4 2016. The gross profit margin headwind was primarily attributed to annual customer price reductions, which were not fully offset with purchasing cost reductions, and an unusually strong advanced feature mix in Q4 2016.
For Q4 2017, Gentex's operating expenses rose 12% to $46.3 million compared to $41.2 million in Q4 2016. The Company's reported quarter operating expenses included approximately $4.4 million of certain costs associated with the retirement of the Company's former Chief Executive Officer (CEO).
During Q4 2017, Gentex's effective tax rate was 5.6%, down from 31.2% during Q4 2016, primarily driven by the impacts of the Tax Cuts and Jobs Act 2017 (Tax Reform). The lower effective tax rate was also due to the re-measurement of the Company's deferred tax liabilities, partially offset by its net transition tax. The total impact of the tax adjustments was a reduction of the Company's income tax expenses by $37.2 million during the reported quarter. The Company's effective tax rate was 23.5% for FY17, which was down from 31.9% for FY16, due to the impacts of the Tax Reform.
Gentex's net income soared 47% and 48% to $130.47 million and $0.46 per diluted share, respectively, for Q4 2017, compared to $88.76 million and $0.31 per diluted share, respectively, in Q4 2016. The Company's earnings were positively impacted by $0.13 per diluted share during the reported quarter as a result of the Tax Reform, as well as revenue growth. The Company's adjusted earnings of $0.33 per share beat Wall Street's estimates of $0.32 per share.
For FY17, Gentex's net income was $406.79 million, or $1.41 per share; up 17% and 18% compared to $347.59 million, or $1.19 per share, respectively, in FY16, also driven by the lower effective tax rate and the increase in revenue.
Segment Results
During Q4 2017, Gentex's Auto-Dimming segment's shipments increased 13% to 10.02 million on a y-o-y basis. As a result, automotive net sales grew 9% to $450.4 million in the reported quarter compared to $411.5 million in the year ago same period. Gentex's Other segment's net sales were $9.2 million in Q4 2017, up 9% compared to $8.4 million in Q4 2016.
Share Repurchase
During Q4 2017, Gentex repurchased 5.1 million shares of its common stock at an average price of $19.96 per share. For FY17, the Company repurchased 12 million shares of its common stock at an average price of $19.35 per share. As of December 31, 2017, the Company had 9.8 million shares remaining available under its share repurchase program.
On January 16, 2018, Gentex repurchased and subsequently retired approximately 5.5 million shares of common stock from the former CEO, pursuant to his retirement agreement effective December 31, 2017, at an average price of $20.98 per share. These shares repurchase and retirement were approved by the Company's Board of Directors and were not repurchased as part of the Company's existing share repurchase plan.
Debt Repayment
Gentex repaid $27 million and $100 million on its term loan during Q4 2017 and FY17, respectively. This debt repayment was in addition to normally scheduled principal repayments of $1.9 million and $7.5 million for Q4 2017 and FY17, respectively. The Company expects to continue, at its discretion, to pay additional principal toward its debt in the future, in anticipation of such debt maturing on September 27, 2018.
Stock Performance Snapshot
February 05, 2018 - At Monday's closing bell, Gentex's stock dropped 3.73%, ending the trading session at $21.66.
Volume traded for the day: 3.12 million shares, which was above the 3-month average volume of 2.16 million shares.
Stock performance in the last month - up 0.88%; previous three-month period - up 10.79%; past twelve-month period - up 6.02%; and year-to-date - up 3.39%
After yesterday's close, Gentex's market cap was at $6.46 billion.
Price to Earnings (P/E) ratio was at 15.33.
The stock has a dividend yield of 1.85%.
The stock is part of the Consumer Goods sector, categorized under the Auto Parts industry.
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