Shares of Gentex Corp. have seen a decline following the company’s announcement that it foresees a negative impact on revenues and margins in the fourth quarter due to the United Auto Workers (UAW) strike.
The stock is currently down 6.2% at $28.50 in midday trading, although it has seen a 4.5% increase throughout this year.
Gentex Corp., headquartered in Zeeland, Michigan and known for its car-safety technology, anticipates a 9% year-on-year decline in North American light vehicle production during the fourth quarter as a result of the ongoing UAW strikes. This is expected to have consequences for the company’s financial results in the current quarter.
Despite exceeding analysts’ forecasts of $567.6 million, Gentex reported a third-quarter sales increase of almost 17%, reaching $575.8 million.
Notwithstanding this positive sales performance, Gentex maintains its full-year 2023 and 2024 revenue guidance while keeping its gross margin and operating expense forecasts unchanged for 2023.
In comparison to the previous year, Gentex recorded a third-quarter profit of $104.7 million, equivalent to 45 cents per share, up from $72.7 million or 31 cents per share. Analysts, as polled by FactSet, had predicted earnings of 43 cents per share.