Investing.com - On Thursday, Gentherm Inc. (NASDAQ:THRM) delivered third quarter results that showed earnings below analyst expectations despite revenue slightly exceeding forecasts.
Shares of the thermal management technology tumbled 7.5% in pre-market trading following the company's announcement.
The company reported adjusted earnings per share of $0.33 for the third quarter, missing the analyst consensus of $0.65 by $0.32. Revenue reached $405.1 million, narrowly beating the estimate of $404.0 million and representing a 4.7% increase from $386.9 million in the prior year period. Excluding foreign currency impacts, revenue grew 4.4% YoY.
"Our third quarter results were in line with expectations as we made continued progress on growth and operational excellence initiatives, while completing the Modine Performance Technologies combination on October 1," said Bill Presley, the company's President and CEO.
The company's Automotive Climate and Comfort Solutions segment posted revenue growth of 8.8% YoY, outperforming light vehicle production in relevant markets by 12 percentage points. However, gross margin declined to 23.3% from 24.6% in the prior year, primarily due to foreign exchange headwinds, higher material costs and inflation.
Adjusted EBITDA totaled $45.0 million, or 11.1% of revenue, compared to $49.0 million, or 12.7% of revenue, in the year-ago quarter.
For full year 2026, Gentherm updated its guidance to $1.825 billion to $1.925 billion in revenue, above the consensus estimate of $1.61 billion. The midpoint of $1.875 billion exceeds the analyst consensus by $265 million. The updated outlook reflects the expected contribution from the recently completed Modine Performance Technologies acquisition in the fourth quarter.
The company also raised its full year adjusted EBITDA guidance to $210 million to $230 million from the prior range of $185 million to $200 million.
Following the Modine transaction closure, Gentherm repurchased $60 million of common stock in October under its newly authorized $400 million buyback program.
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