Gentherm (THRM) Tops Q1 EPS by 13c, Revenues Beat; Affirms FY19 Revenue Guidance

April 30, 2019 6:11 AM EDT

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Gentherm (NASDAQ: THRM) reported Q1 EPS of $0.55, $0.13 better than the analyst estimate of $0.42. Revenue for the quarter came in at $257.9 million versus the consensus estimate of $250.84 million.

  • Product revenues of $257.9 million decreased 2.5% from $264.6 million in the 2018 first quarter. Excluding the impact of foreign currency translation, product revenues were flat year over year
  • Excluding the impact of foreign currency translation, divested assets and assets held for sale, product revenues increased 3.0% year over year
  • GAAP diluted earnings per share was $0.25 as compared with $0.35 for the prior-year period
  • Adjusted diluted earnings per share (see table herein), was $0.55. Adjusted diluted earnings per share in the prior-year period was $0.52
  • Secured automotive new business awards totaling $400 million in the quarter

Phil Eyler, the Company's President and CEO, said “I am pleased with the continued progress we are making with our focused growth strategy, validated by our improving operating performance, innovative technology advances and our first Automotive News PACE award. Despite the production headwinds in the industry, we achieved organic revenue growth in automotive, significantly outperforming our key markets. We delivered year-over-year revenue growth in Climate Control Seat (“CCS®”) for the third consecutive quarter and secured $400 million of new awards from top auto makers around the world. In Medical, we delivered double-digit revenue growth both sequentially and year over year. In addition, we continue to improve our cost performance through the Fit-for-Growth program.”

GUIDANCE:

Gentherm sees FY2019 revenue of $1.01-1.04 billion, versus the consensus of $1.03 billion.

The Company maintains its full-year 2019 guidance, excluding divested assets and assets held for sale, that was initially provided on its year-end 2018 earnings call on February 21, 2019:

  • Product revenues are expected to grow between 4% and 6% to a range of $1.01 billion to $1.04 billion
  • Operating expenses between 19% and 20% of product revenues
  • Gross margin rate between 28% and 30%
  • Adjusted EBITDA between 14% and 15% of product revenue
  • Full-year effective tax rate between 28% and 30%
  • Capital expenditures between $40 and $50 million

The Company also maintains the following outlook for 2021:

  • Product revenue growth of high single-digit CAGR for the 2018 to 2021 period
  • Operating expenses between 15% and 17% of product revenues
  • Gross margin rate between 30% and 32%
  • Adjusted EBITDA margin of high teens
  • ROIC of greater than 20%

For earnings history and earnings-related data on Gentherm (THRM) click here.



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