Gentherm (THRM) Tops Q4 EPS by 35c, Revenues Beat

February 19, 2020 6:09 AM EST
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Price: $67.97 -1.44%

EPS Growth %: +103.9%

Financial Fact:
Interest expense: -877K

Today's EPS Names:
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Gentherm (NASDAQ: THRM) reported Q4 EPS of $0.65, $0.35 better than the analyst estimate of $0.30. Revenue for the quarter came in at $230.38 million versus the consensus estimate of $225.65 million.

Fourth Quarter Highlights

  • Product revenues of $230.4 million decreased 10.0% from $256.0 million in the 2018 fourth quarter. Excluding the impact of foreign currency translation and divested assets, product revenues declined 2.9% year over year
  • Automotive revenues, excluding the impact of foreign currency translation, decreased 4.6% year over year
  • GAAP diluted earnings per share was $0.32 as compared with earnings per share of $0.36 for the prior-year period
  • Adjusted diluted earnings per share, excluding impairments and net loss on divestures, restructuring expenses, and unrealized currency loss (see table herein), was $0.65. Adjusted diluted earnings per share in the prior-year period was $0.50
  • Secured record quarterly automotive new business awards totaling approximately $560 million

“We delivered strong financial results despite macroeconomic and automotive industry challenges and consistently outperformed light vehicle production in our key markets. In Automotive, we secured $1.5 billion of new awards from automakers around the world in 2019. In Medical, we delivered double-digit revenue growth as a result of strong demand for Blanketrol®, UV Treo and the addition of Stihler products,” said Phil Eyler, Gentherm’s President and Chief Executive Officer. “Additionally, we made significant progress in improving profitability through the ‘Fit-for-Growth’ program. In 2019, we increased our gross margin rate by 60 basis points and achieved a 130-basis point improvement in our Adjusted EBITDA margin rate. While we expect continued industry headwinds in 2020, the momentum in new awards, along with expanding demand for our new technologies and our continued focus on productivity, position us well to deliver significant long-term shareholder value.”


The Company is providing the following guidance for full-year 2020, excluding divested assets:

  • Product revenues are expected to change between down 1% and up 3%, excluding the impact of foreign currency, with year-over-year growth gradually increasing as the year progresses
  • Gross margin rate between 29% and 30%
  • Adjusted operating expenses between 18% and 19% of product revenues
  • Adjusted EBITDA between 15% and 16% of product revenues
  • Full-year effective tax rate between 27% and 29%
  • Capital expenditures between $40 and $50 million

The Company plans to provide an updated longer-term outlook at an Investor event being planned for June 2020 around the North American International Auto Show in Detroit.

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

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