Gentex 4Q profit slips, but beats expectations
ZEELAND, Mich. (AP) — Auto parts supplier Gentex said Tuesday that its fourth-quarter net income fell 2 percent, weighed down by a patent infringement settlement.
Its performance still managed to top analysts' estimates, and shares climbed more than 4 percent in midday trading.
For the three months ended Dec. 31, Gentex Corp. earned $39.6 million, or 28 cents per share. That compares with $40.5 million, or 28 cents per share, a year earlier.
Analysts surveyed by FactSet expected earnings of 26 cents per share.
Gentex said that it settled patent infringement complaints with American Vehicular Sciences LLC in December. The company's quarterly litigation settlement cost was $5 million.
Revenue was basically flat at $260.3 million. Wall Street forecast $258.9 million in revenue.
Gentex's stock added 81 cents, or 4.3 percent, to $19.49 in midday trading. The shares have traded in a 52-week range of $14.38 to $30.23.
Gross margin declined slightly from a year ago, mostly because of annual customer price cuts and product mix. When compared with the subsequent quarter, gross margin improved primarily on more efficient production efforts.
Gentex's full-year net income rose 2 percent to $168.6 million, or $1.17 per share, from $164.7 million, or $1.14 per share, in the previous year. Annual revenue increased 8 percent to $1.1 billion from $1.02 billion.
The Zeeland, Mich.-based company expects first-quarter revenue will be down about 5 percent to 10 percent. Based on the prior-year period's $290.7 million in revenue, this implies $261.5 million to $276.2 million.
Analysts predict revenue of $280.8 million for the period.
Business Photo Galleriesview all
- 17917Oklahoma medical examiner reports cause of deaths in Grand Lake boat crash
- 11872Oklahoma State football: Todd Monken thinks Wes Lunt should've stayed in Stillwater
- 10569OKC Thunder: Thunder trio praise fans before potential departures
- 10552Oklahoma City Thunder: Amnesty Kendrick Perkins?
- 10275Rockets guard Patrick Beverley bombarded with hateful Tweets after Thunder get eliminated
- 9958Oklahoma football: Sooners get pair of commitments
- 9874Report: OSU blocking Wes Lunt from transferring to the SEC, Big 12 and Southern Miss