Gentex Corporation (NASDAQ:GNTX) Just Reported Third-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

It's been a sad week for Gentex Corporation (NASDAQ:GNTX), who've watched their investment drop 10% to US$23.72 in the week since the company reported its third-quarter result. Revenues came in 2.1% below expectations, at US$655m. Statutory earnings per share were relatively better off, with a per-share profit of US$0.46 being roughly in line with analyst estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the most recent consensus for Gentex from seven analysts is for revenues of US$2.67b in 2026. If met, it would imply a notable 9.7% increase on its revenue over the past 12 months. Per-share earnings are expected to swell 14% to US$1.94. Before this earnings report, the analysts had been forecasting revenues of US$2.67b and earnings per share (EPS) of US$1.99 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Check out our latest analysis for Gentex

It might be a surprise to learn that the consensus price target was broadly unchanged at US$30.06, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Gentex analyst has a price target of US$42.00 per share, while the most pessimistic values it at US$25.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Gentex's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Gentex'shistorical trends, as the 7.7% annualised revenue growth to the end of 2026 is roughly in line with the 8.4% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 15% per year. So although Gentex is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Gentex. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$30.06, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Gentex analysts - going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Gentex's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.