Gentex Corp

GNTX: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$51.00	Wsqsxx	Pncpgqmf

Gentex Earnings: June Order Decline Looks To Be a One-Off Event

David Whiston

Jul 26, 2024

Gentex’s second quarter saw large headwinds from many automakers suddenly, and without explanation, reducing June production. April and May had been tracking to Gentex’s expectations, but customers pulled back in June. Some automakers like Stellantis have had high inventory, and Gentex CEO Steve Downing speculated that many customers may have wanted to pare down raw material inventory. The decline was not related to the June 19 cyberattack on auto dealer vendor CDK. We maintain our fair value estimate because July production is trending with Gentex’s budget, but if it continues to drastically suffer, a fair value estimate reduction may occur after third- or fourth-quarter earnings.

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