Gentex Earnings: Rare Soft Quarter Does Not Cause Us Much Concern for the Company's Long-Term Health

Gentex’s fourth-quarter results were surprisingly weak for a company that consistently outperforms industry growth. Diluted EPS of $0.39 fell 22% year over year and missed the $0.48 LSEG consensus, sending the stock down 8.1% on Jan. 31. Revenue fell 8.1% and the company said about half its nearly $50 million revenue shortfall versus budget came from lower full display mirror shipments. FDM shipments still rose 21% for the full year, and the company sees about 300,000 units of FDM growth from 2.96 million in 2024. We are leaving our fair value estimate in place but will review all modeling assumptions as part of rolling the model for the 10-K soon to be filed.