NORTHVILLE, Mich. - Gentherm (NASDAQ: NASDAQ:THRM), a global leader in thermal management technologies, reported first-quarter financial results that saw the company beating adjusted earnings per share (EPS) estimates but falling short on revenue expectations.
For the quarter ending March 31, 2024, the company posted an adjusted EPS of $0.62, surpassing the analyst consensus of $0.45. However, revenues slightly missed the mark at $356 million compared to the anticipated $361.79 million.
Despite the revenue shortfall, Gentherm's adjusted EPS represents a significant improvement from the $0.49 reported in the first quarter of the previous year. The company's product revenues saw a slight decline of 2.1% from the $363.6 million recorded in the first quarter of 2023, with a 1.3% decrease after adjusting for foreign currency translation effects.
Automotive revenues also decreased by 2.3% YoY, but excluding the impact of foreign currency translation and other factors, there was a marginal increase of 0.1%.
Phil Eyler, President and CEO of Gentherm, highlighted the company's strong demand from OEMs and a record $530 million in new automotive business awards for the quarter. Eyler attributed the improved gross margin rate, which rose to 24.9% from 22.3% YoY, to the company's Fit-for-Growth 2.0 initiatives, including supplier cost reductions and increased productivity.
Looking ahead, Gentherm reaffirmed its full-year 2024 guidance, expecting product revenues to range between $1.5 billion and $1.6 billion, aligning with the analyst consensus of $1.55 billion. The company's forecast is based on current customer orders and an anticipated low single-digit decline in light vehicle production in key markets.
The company's stock movement was not specified, and no specific driver of the move was indicated.
Gentherm's continued focus on innovation and operational efficiency is evident in its ability to secure significant new business in a challenging automotive market. The company's solid start to the year, underscored by its record first-quarter new business awards and improved profitability, positions it well for ongoing growth and margin expansion throughout 2024.
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