Gentherm (THRM) Tops Q3 EPS by 42c, Revenues Beat; Offers 4Q Revenue Guidance Above Consensus

Gentherm (NASDAQ: THRM) reported Q3 EPS of $0.91, $0.42 better than the analyst estimate of $0.49. Revenue for the quarter came in at $259.5 million versus the consensus estimate of $227.67 million.

Third Quarter Highlights

• Product revenues of $259.5 million increased 8.1% from $240.1 million in the 2019 third quarter
• Excluding the impact of foreign currency translation and divested assets, product revenues increased 8.1% year over year
• GAAP diluted earnings per share was $0.73 as compared to $0.48 in the prior-year period
• Adjusted earnings per share (see table herein) was $0.91 as compared to $0.68 in the prior-year period
• Secured automotive new business awards totaling $80 million

Phil Eyler, the Company's President and CEO, said “I am pleased that the continued strong execution of our Focused Growth strategy has generated the highest quarterly revenue in two years and record quarterly operating income. In Automotive, we had a record revenue quarter and outperformed actual light vehicle production in our key markets by approximately 800 basis points. In Medical, we continued to deliver double-digit revenue growth.”

“The momentum on the topline along with our ongoing disciplined approach to managing expenses also enabled us to achieve the highest gross margin and gross margin rate in three years and record Adjusted EBITDA in the quarter. While there is still near-term uncertainty in the macroeconomic environment, I am proud of our global team for the fast response to OEM demand increases, our improving operating performance and expanding technology leadership. This, along with our strong balance sheet, gives us confidence in delivering long-term shareholder value,” continued Eyler.

GUIDANCE:

Gentherm sees Q4 2020 revenue of $240-260 million, versus the consensus of $228.41 million.

As a result of the unprecedented uncertainty facing the automotive industry and global economy, Gentherm withdrew its 2020 full financial guidance on March 25, 2020 and has not been providing updates with the exception of commentary on revenue trends. The Company expects product revenues in the fourth quarter of 2020 to be in the range of $240 to $260 million.

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

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