Roth Capital Upgrades Gentherm’s Q2 Earnings Outlook to $0.63

Gentherm Inc (NASDAQ: THRM) has received a positive earnings estimate upgrade from Roth Capital, which raised its forecast for the company’s second quarter of 2026. In a research report released on October 23, 2023, analyst M. Koranda projected that Gentherm will earn $0.63 per share, an increase from the previous estimate of $0.60. Roth Capital maintains a “Buy” rating for the stock with a price target of $44.00.

The consensus estimate for Gentherm’s full-year earnings currently stands at $3.10 per share. In addition to the revised Q2 estimate, Roth Capital also forecasts earnings of $0.73 per share for Q3 2026 and $2.45 and $2.67 for FY2026 and FY2027, respectively.

Recent Quarterly Performance

Gentherm’s latest earnings report, published on October 23, revealed that the company achieved $0.73 earnings per share (EPS) for the previous quarter, surpassing the consensus estimate of $0.64 by $0.09. The company’s revenue for the quarter reached $386.87 million, exceeding analysts’ expectations of $374.75 million. This performance marks a 4.1% increase in revenue compared to the same period last year, when Gentherm reported an EPS of $0.75.

The company’s net margin for the quarter was 2.08%, with a return on equity of 9.55%. Gentherm has also provided guidance for FY2025, although specific figures were not disclosed.

Market Response and Trading Activity

Shares of Gentherm opened at $36.83 on the Monday following the earnings announcement, reflecting a slight decline of 0.2%. The stock has fluctuated significantly over the past year, with a 52-week low of $22.75 and a high of $47.00. Financial metrics reveal a debt-to-equity ratio of 0.26, a quick ratio of 1.33, and a current ratio of 1.96. Gentherm has a market capitalization of approximately $1.12 billion and a price-to-earnings (P/E) ratio of 36.83.

Institutional trading has been robust, with several large investors adjusting their holdings in Gentherm. For instance, GAMMA Investing LLC increased its stake by an impressive 332.4% in Q1, acquiring 2,106 shares valued at $56,000. Other firms, including Oppenheimer Asset Management Inc. and Mirae Asset Global Investments Co. Ltd., have also increased their positions, demonstrating strong institutional interest.

Insider trading activity has been noted as well, with Barbara J. Runyon, Senior Vice President, selling 3,348 shares on August 21, 2023, at an average price of $34.82, totaling $116,577.36. Following this transaction, Runyon’s ownership decreased by 9.66%, and corporate insiders currently hold 1.40% of the stock.

Gentherm designs, develops, manufactures, and sells thermal management and pneumatic comfort technologies, operating in both the automotive and medical sectors. The automotive segment focuses on climate comfort systems, including seat heaters and electronic control units, aimed at enhancing passenger comfort in vehicles.

As Gentherm continues to navigate the automotive industry’s evolving landscape, the recent forecasts and positive quarterly performance position the company favorably for future growth.