Gentex Corp (NASDAQ:GNTX) stock fell 5.93% (As on October 24, 3:24:26 AM UTC-4, Source: Google Finance) after the company reported lower than expected third-quarter 2026 results, which misses Wall Street estimates on both profit and revenue as customer issues and delayed launches, including a strike at Hyundai-Kia that disrupted production, which weighed on sales. However, Premium audio revenue rose 27.4% year over year to $54.7 million. Aerospace revenue increased 135%, and fire protection revenue rose 36%. The cash and cash equivalents were $134.4 million at quarter end compared to $145.6 million at year-end.

Moreover, in North America, automotive revenue increased approximately 3%, despite a 5% decline in regional light vehicle production. In Europe, revenue, excluding the Volkswagen program loss, increased approximately 13%. However, the Volkswagen headwind more than offset that underlying growth. Globally, automotive revenue, excluding the previously discussed headwinds in China and at Volkswagen, increased approximately 2%, despite global light vehicle production declining by more than 2%.

GNTX in the third quarter of FY26 has reported the adjusted earnings per share of 47 cents, missing the analysts’ estimates for the adjusted earnings per share of 50 cents. The company had reported the adjusted revenue decline of 1.1 percent to $647.7 million in the third quarter of FY26, missing the analysts’ estimates for revenue of $670.1 million. Adjusted net income attributable to Gentex was $97.8 million, compared with $103.7 million in the third quarter of 2025. Adjusted income from operations was $118.8 million, compared with $123.4 million in the third quarter of last year.

Gentex kept its 2027 revenue outlook at $2.8 billion to $2.9 billion, which implies 6% to 9% growth from its updated 2026 guidance of about $2.65 billion. The guidance reflects rising content per vehicle, new product launches and growth in non-automotive businesses. For 2026, the company lowered its revenue outlook to about $2.65 billion and said gross margin should land between 34.0% and 34.5%. It also guided to operating expenses of $395 million to $410 million, excluding severance and impairments, and a tax rate of 16.0% to 16.5%. Management said fourth-quarter cost pressures could add $10 million to $15 million in incremental expense, with recovery expected in the first half of 2027. It also said the first PCBA award, at about $180 million in annualized revenue, should begin production in 2029. The company expects DMS and ICMS programs to contribute $80 million to $100 million in revenue in 2027.