Shares of Gentex Corp. fell the most in 26 years after the maker of rearview mirrors reported second-quarter revenue that fell short of estimates.
Gentex dropped 22 percent to $16.48 a share at 10:36 a.m. in New York after earlier sliding 25 percent to $15.87, the biggest intraday decline since Jan. 8, 1986. Gentex, based in Zeeland, Michigan, had $280.3 million in sales, according to a statement Tuesday. The average estimate of 10 analysts surveyed by Bloomberg was for revenue of $283 million.
Gentex also forecast that third-quarter sales would be about the same to 5 percent higher compared with 2011’s third quarter. The company reported second-quarter net income of $40.8 million, or 28 cents a share. The average estimate of 11 analysts was for a profit of 29 cents.
The company’s gross profit margin declined to 33.1 percent in the second quarter, down from 34.7 percent in this year’s first quarter and 35.2 percent a year earlier. The slide was because of annual price reductions and product mix, according to the statement.
“We recognize that we have work to do to improve the gross profit margin,” Chief Executive Officer Fred Bauer said in the statement.
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