GTES Earnings Prediction
The chart below shows how GTES performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GTES sees a -2.60% change in stock price 10 days leading up to the earnings, and a +0.47% change 10 days following the report. On the earnings day itself, the stock moves by +1.60%. This data can give you a slight idea of what to expect for the next quarter's release.
GTES Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
830.70M
-4.83%
-6.19%
Gross Margin
41.06%
6.48%
0.76%
Operating Margin
14.73%
3.95%
-8.40%
Net Margin
6.64%
-32.31%
-24.55%
EPS
0.18
-37.93%
-30.77%
No Data Available
GTES Earnings Analysis
Gates Industrial Corporation plc Corporation (GTES.N) Earnings Conference Call
Positive
Replacement Sales Overview: Total replacement sales increased 1%, led by modest growth in automotive replacement, while sales to OEMs declined in the low double-digit range.
EBITDA Margin Improvement: We generated a 30 basis points increase in adjusted EBITDA margins, fueled by a 110 basis points increase in our gross margin.
Net Leverage Ratio Improvement: Our net leverage ratio declined to 2.4 times from 2.6 times in the year ago period, supported by a lower debt balance and improved profitability.
Shareholder Capital Return: During the quarter, we returned capital to shareholders via a $125 million share repurchase.
2024 EPS Guidance Increase: We have raised our 2024 guidance, raising our adjusted EPS midpoint to $1.35.
Negative
Core Business Decline: We experienced about a 4% decline on a core basis, primarily driven by weaker demand in the agriculture, construction and personal mobility markets.
Replacement Sales Overview: Total replacement sales increased 1%, led by modest growth in automotive replacement, while sales to OEMs declined in the low double-digit range.
Net Leverage Ratio Improvement: Our net leverage ratio declined to 2.4 times from 2.6 times in the year ago period, supported by a lower debt balance and improved profitability.
Sales Decline Analysis: In the third quarter, we produced sales of $831 million, which was a 3.8% decrease on a core basis.
Earnings Per Share Decline: Our adjusted earnings per share was $0.33, which was 8% lower versus the year prior.
GTES FAQs
How does GTES typically perform around its earnings report dates?
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GTES Earning Call Sentiment
Gates Industrial Corporation plc (GTES) Q3 2024 Earnings Call Transcript
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GTES.N
-0.84%Positive
The earnings call reveals a mixed picture with a negative tilt. Financial performance shows a decline in sales and EPS, despite some margin improvement. The Q&A highlights concerns over demand, inventory risks, and execution risks in footprint optimization. While shareholder returns via buybacks are positive, the lowered guidance and potential operational disruptions weigh heavily. The market cap suggests moderate sensitivity, thus predicting a 'Negative' stock price movement of -2% to -8% over the next two weeks.
