What happened
Gentherm(NASDAQ: THRM), a specialty auto parts and accessories maker, saw its stock get thrown in reverse on Hump Day. The company's shares tumbled by nearly 7% on the day, a far worse showing than the S&P 500 index's 0.2% drop. That was hardly surprising, as Gentherm missed badly on the bottom line with its latest quarterly earnings report.
So what
For its fourth quarter of 2022, Gentherm actually reported a hot increase in sales. Total product revenue was just north of $343 million, for a 38% year-over-year improvement. The big catch was that non-GAAP (adjusted) net income traveled in the opposite direction, falling by 23% to $15.6 million.
Compounding that, the bottom-line figure didn't reach the average analyst estimate. Collectively, pundits following Gentherm stock were expecting the company to post a far better adjusted net income figure of $0.64 per share. At least the company topped the revenue estimate, albeit only slightly. On average, prognosticators were modeling $342.5 million for that line item.
Gentherm said that throughout 2022, it operated in an environment of unfavorable macroeconomic developments and what it termed "challenging industry dynamics." Despite this, it closed a pair of acquisitions and managed to post a new all-time record for annual revenue.
Now what
Gentherm might set a fresh high for 2023; its guidance for the year calls for product revenue of between $1.45 billion and $1.55 billion. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) should come in at 11.5% to 13.5% of product revenue. The company did not provide a net income forecast.
10 stocks we like better than Gentherm
When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now… and Gentherm wasn't one of them! That's right -- they think these 10 stocks are even better buys.
*Stock Advisor returns as of February 8, 2023
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
