Gentex falls 5.0% after quarterly earnings miss and lowered guidance

What happened

Gentex (GNTX) fell 5.0% on October 23, 2026, because third-quarter results missed earnings estimates and the company narrowed its 2026 revenue outlook. The auto-parts supplier reported quarterly earnings per share of $0.47 versus $0.50 expected, a 6.6% shortfall, and said revenue came in about $35 million lower than the company’s forecast at the start of the quarter. Management cited customer issues and delayed product launches, weakness in China and rising costs as headwinds.

How big was the move

The stock opened 7.0% below the previous close and closed at $20.66, with trading volume 1.5 times its 20-day average. The decline was 3.3 times a typical daily move for this stock and was 3.4 percentage points worse than the Consumer Cyclical sector median on the day, as the sector median fell 1.6% while the S&P 500 fell 0.5%. Over the last five sessions the stock fell 1.7%, versus the S&P 500’s five-session decline of 0.5%.

The technical picture

The stock traded 3.2% below its 20-day moving average, 7.2% below its 50-day moving average and 10.9% below its 200-day moving average. The 50-day average is below the 200-day average, a sign of a weak longer-term trend. The Relative Strength Index (14 days) stood at 39, inside a neutral range between 30 and 70. The shares were 22.1% below the 52-week high and over one year fell 21.2%, lagging the S&P 500 by 35.0 percentage points.

Volatility has been relatively muted; the stock’s 60-day annualized volatility was 24%, lower than 58% of its own readings over five years. That lower market sensitivity fits with a beta of 0.47, which indicates the stock tends to move less than the market.

Fundamentals and valuation

For the four quarters through September 30, 2026, Gentex reported revenue of $2.62 billion, which grew 7.7% from a year earlier. Gross margin rose to 34.8% from 33.7% a year earlier, and operating margin widened to 19.1% from 18.2%. Return on invested capital stood at 6.8%.

The stock traded at 9.9 times expected earnings on a price-to-forward-earnings basis. PromtFinance scores showed strength in Quality at 83 (Strong) and Stability at 96 (Exceptional), with Value 71 (Positive) and Momentum 35 (Weak); Revisions scored 17 (Very weak). Those scores suggest the company has solid underlying financial quality and stability but faces weak momentum and analyst revision trends.

Earnings and analyst expectations

Gentex reported third-quarter 2026 net sales of $647.7 million, down from $655.2 million a year earlier, and quarterly earnings of $0.47 per share, missing estimates. Management said revenue was about $35 million lower than the company’s forecast at the start of the quarter because of customer issues and delayed product launches, and also cited weakness in China and rising costs as pressures on results.

Gentex lowered its 2026 revenue guidance to approximately $2.65 billion, down from a prior range of $2.65 billion to $2.75 billion. The revision narrowed the outlook at the low end of the prior range and left the midpoint below earlier expectations.

Consecutive quarters beating estimates stood at 0. The average surprise over the last four reports was 4.6% above estimates, while the typical two-day reaction after recent reports was that the stock fell 1.8%. Analysts’ consensus price target was $23.00, 11.3% above the closing price, based on 20 analysts; 55% of those analysts rated the stock Buy or Strong Buy and the consensus rating was Buy. The company’s next report was scheduled for January 29, 2027.

What to watch

• Next report on January 29, 2027
• Company guidance: 2026 revenue approximately $2.65 billion (revised)
• Quarterly revenue of $647.7 million and EPS $0.47 reported October 23, 2026
• Consensus price target $23.00 (11.3% above the closing price)
• Similar sessions: In the past five years the stock had 7 sessions with a decline of at least 5.0%; twenty trading days later the median result was a gain of 5.7%, and 5 of 7 were higher