Gentex (NASDAQ:GNTX) Posts Quarterly Earnings Results, Beats Expectations By $0.08 EPS

Gentex (NASDAQ:GNTX) announced its earnings results on Friday. The auto parts company reported $0.58 earnings per share for the quarter, topping the consensus estimate of $0.50 by $0.08, FiscalAI reports. Gentex had a net margin of 14.75% and a return on equity of 16.27%. The business had revenue of $651.30 million during the quarter, compared to the consensus estimate of $669.65 million. During the same quarter in the prior year, the firm earned $0.43 earnings per share. The business’s quarterly revenue was down 1.0% compared to the same quarter last year.

Here are the key takeaways from Gentex’s conference call:

• Gentex reported record second-quarter EPS of $0.54, up 26% year over year, even though revenue came in below forecast. Higher gross margin and tight expense control helped drive the earnings beat.
• Gross margin improved to 37% from 34.2% last year, aided by about $18 million of IEEPA tariff reimbursements and favorable product mix. Management also raised full-year gross margin guidance to 34.5% to 35.5%.
• Automotive revenue declined as base mirror shipments and China sales stayed weak, with China expected to end 2026 around $100 million and remain in decline next year. Management said Europe is also pressured by lost programs and softer customer volumes.
• Non-automotive businesses continued to diversify the portfolio, led by premium audio revenue up 16% and other products up 12%. Gentex said non-automotive revenue now represents about 14% of total sales.
• The company highlighted strong product-launch momentum, including Full Display Mirror, driver and in-cabin monitoring systems, and advanced mirror features. Management also said it is progressing with a Morocco plant for European customers and expects to announce its first advanced electronics manufacturing award by next quarter.

Gentex Price Performance

GNTX opened at $22.90 on Friday. The business has a 50 day simple moving average of $24.49 and a 200-day simple moving average of $23.53. The stock has a market capitalization of $4.88 billion, a P/E ratio of 12.87 and a beta of 0.78. Gentex has a 12 month low of $20.48 and a 12 month high of $29.38.

Gentex Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, July 22nd. Stockholders of record on Wednesday, July 8th were paid a dividend of $0.12 per share. This represents a $0.48 dividend on an annualized basis and a dividend yield of 2.1%. The ex-dividend date of this dividend was Wednesday, July 8th. Gentex’s dividend payout ratio is 26.97%.

Trending Headlines about Gentex

Here are the key news stories impacting Gentex this week:

• Positive Sentiment: Gentex reported quarterly EPS of $0.58, above the $0.50 consensus estimate, showing stronger-than-expected profitability. Gentex Tops Q2 Earnings Estimates
• Positive Sentiment: The company reaffirmed its FY2026 and FY2027 outlook and guided revenue above consensus ranges, which suggests management remains confident in longer-term demand. Gentex Warns China Sales Will Keep Falling Through 2027
• Neutral Sentiment: Gentex’s earnings call transcript and earnings snapshots should provide more detail on margin trends, vehicle production assumptions, and management’s commentary, but they are not direct catalysts by themselves. Gentex Corporation Q2 2026 Earnings Call Transcript
• Negative Sentiment: Revenue came in below expectations at $651.3 million versus $669.65 million expected, and the company said China sales are likely to keep declining through 2027, raising concerns about growth. Gentex falls after Q2 revenue miss amid auto sales weakness
• Negative Sentiment: Broader auto-sales weakness and the revenue miss point to softer end-market demand, which is likely pressuring the stock despite the EPS beat.

Insider Buying and Selling

In other Gentex news, Director Richard O. Schaum sold 4,815 shares of the stock in a transaction on Thursday, April 30th. The stock was sold at an average price of $23.31, for a total value of $112,237.65. Following the completion of the transaction, the director owned 81,443 shares in the company, valued at approximately $1,898,436.33. This represents a 5.58% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Joseph B. Anderson, Jr. sold 5,939 shares of the firm’s stock in a transaction on Friday, May 15th. The shares were sold at an average price of $22.98, for a total value of $136,478.22. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 16,693 shares of company stock valued at $385,194 over the last quarter. Company insiders own 0.55% of the company’s stock.

Institutional Trading of Gentex

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Royal Bank of Canada increased its holdings in Gentex by 33.1% in the first quarter. Royal Bank of Canada now owns 189,561 shares of the auto parts company’s stock valued at $4,418,000 after buying an additional 47,150 shares in the last quarter. Goldman Sachs Group Inc. grew its holdings in shares of Gentex by 1.8% in the 1st quarter. Goldman Sachs Group Inc. now owns 1,321,634 shares of the auto parts company’s stock worth $30,794,000 after acquiring an additional 23,454 shares during the period. Empowered Funds LLC grew its holdings in shares of Gentex by 255.6% in the 1st quarter. Empowered Funds LLC now owns 81,142 shares of the auto parts company’s stock worth $1,891,000 after acquiring an additional 58,323 shares during the period. Invesco Ltd. increased its stake in Gentex by 8.0% in the 2nd quarter. Invesco Ltd. now owns 813,163 shares of the auto parts company’s stock valued at $17,881,000 after purchasing an additional 60,127 shares in the last quarter. Finally, EverSource Wealth Advisors LLC increased its stake in Gentex by 2,038.4% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 4,512 shares of the auto parts company’s stock valued at $99,000 after purchasing an additional 4,301 shares in the last quarter. Institutional investors and hedge funds own 86.76% of the company’s stock.

Analyst Ratings Changes

A number of research firms have weighed in on GNTX. Wall Street Zen cut Gentex from a “buy” rating to a “hold” rating in a research report on Sunday, July 12th. Weiss Ratings upgraded Gentex from a “hold (c-)” rating to a “hold (c)” rating in a research note on Tuesday, June 23rd. Freedom Capital upgraded Gentex to a “strong-buy” rating in a research note on Friday, March 27th. JPMorgan Chase & Co. increased their price target on Gentex from $27.00 to $28.00 and gave the stock a “neutral” rating in a report on Thursday, May 14th. Finally, Robert W. Baird lifted their price objective on shares of Gentex from $25.00 to $26.00 and gave the company a “neutral” rating in a research report on Monday, April 27th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and six have issued a Hold rating to the company’s stock. According to MarketBeat.com, Gentex presently has a consensus rating of “Hold” and an average target price of $27.00.

Gentex Company Profile

Gentex Corporation (NASDAQ: GNTX) is a global technology company specializing in the design and manufacture of automotive and aerospace products. The company’s primary business centers on automatic-dimming rearview mirrors, advanced driver-assistance systems (ADAS), and camera-based driver monitoring technologies. In the automotive sector, Gentex supplies exterior and interior mirrors with integrated electronics, connectivity features, and safety capabilities to many of the world’s leading original equipment manufacturers (OEMs).