Gentex Corp. (GNTX) had its biggest drop since Aug. 8 after the maker of rearview mirrors and driver- assistance cameras reported profit that was lower than analysts’ estimates because price cuts hurt margins.
Gentex fell as much as 8.5 percent. It slid 8 percent percent to $27.70 at 11:10 a.m. New York time after touching $27.57. The shares, which gained 1.8 percent this year before today, rose 0.1 percent in 2011.
Fourth-quarter profit rose to $40.5 million, or 28 cents a share, from $36.9 million, or 26 cents. The average estimate of seven analysts surveyed by Bloomberg was for a profit of 30 cents a share. Gross margin narrowed to 35 percent of sales from 36 percent, mostly because of yearly customer price cuts, the company said.
Gentex sales rose 17 percent to $260.3 million, the Zeeland, Michigan-based company said in a statement. The average of five estimates was for revenue of $273.6 million.
To contact the editor responsible for this story: Jamie Butters at email@example.com.