Gentherm Earnings: Here’s Why Investors are Not Excited Now

Gentherm (NASDAQ:THRM) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 6.62%.

Gentherm Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 91.67% to $0.23 in the quarter versus EPS of $0.12 in the year-earlier quarter.

Revenue: Rose 17.88% to $160.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Gentherm reported adjusted EPS income of $0.23 per share. By that measure, the company met the mean analyst estimate of $0.23. It beat the average revenue estimate of $149.93 million.

Quoting Management: “We had record revenues in this year’s second quarter and first six months thanks to the contributions of all our business units around the world,” said President and CEO Daniel R. Coker. “The key driver of our revenue growth is our ability to successfully add new platforms and to penetrate new markets not only in our line of automotive products, but also in our newer thermal initiatives in comfort and cooling in bedding, furniture and other products.”

Key Stats (on next page)…

Revenue increased 8.38% from $148.09 million in the previous quarter. EPS decreased 4.17% from $0.24 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.25 to a profit $0.26. For the current year, the average estimate has moved up from a profit of $0.89 to a profit of $0.95 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]