Why Gentherm Stock Cooled to a 7% Decline Today
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.
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.
Source Fool.com
