Gentex Q3 Earnings Miss Estimates; Cuts 2H Outlook - Gentex (NASDAQ:GNTX)

Gentex Corp GNTX reported a third-quarter FY21 sales decline of 15.8% year-on-year, to $399.6 million, missing the analyst consensus of $437.09 million.
Automotive net sales declined 15.8% to $391.3 million. Auto-dimming mirror unit shipments fell 7%.
Global light vehicle production in its primary regions of Europe, North America, Japan/Korea, and China decreased 23% Y/Y.
The largest shortfall in light vehicle production for Q3 came from the European and North American markets, which together experienced actual light vehicle production levels decline by about 27%.
The gross profit margin of 35.3% contracted 440 basis points Y/Y. Operating expenses rose by 7% to $52.7 million.
The operating margin was 22%, and the operating income fell 36.5% Y/Y to $88.2 million.
The company held $276.9 million in cash and equivalents as of September 30, 2021.
EPS of $0.32 missed the analyst consensus of $0.38.
"While we have been dealing with the impacts of supply chain constraints throughout the first half of 2021, the effects of the electronic component shortages worsened during the third quarter of this year," said CEO Steve Downing.
Outlook: Gentex has cut the 2H FY21 revenue outlook to $770 million - $840 million from the previous $970 million - $1.07 billion.
It sees second-half FY21 gross margin of 35% - 36% (prior view 37.5% - 38.5%).
Price action: GNTX shares are trading lower by 1.86% at $36.17 on the last check Friday.