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 +0.42% 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
829.40M
-3.93%
-0.16%
Gross Margin
40.61%
3.49%
-1.10%
Operating Margin
14.25%
0.92%
-3.26%
Net Margin
4.97%
-38.03%
-25.15%
EPS
0.14
-41.67%
-22.22%
No Data Available
GTES Earnings Analysis
Gates Industrial Corporation PLC Corporation (GTES.N) Earnings Conference Call
Positive
EBITDA Margin Improvement: Adjusted EBITDA margins increased by 140 basis points, exceeding initial forecasts, demonstrating strong operational execution despite challenging demand conditions.
Record Earnings and EBITDA: Record adjusted earnings per share and adjusted EBITDA dollars were achieved in 2024, reflecting the organization's operational strength and improved financial flexibility.
EBITDA Margin Expansion: Adjusted EBITDA margin expanded to 21.8% in Q4 2024, driven by a 130 basis point increase in gross margin to a record 40.4%, supported by enterprise initiatives and favorable channel mix.
Strong Cash Generation: Free cash flow conversion reached 168% in Q4 2024, contributing to a full-year conversion of 74%, indicating strong cash generation capabilities.
Net Leverage Improvement: Net leverage ratio improved to 2.2x at year-end 2024, down from 2.3x in 2023, alongside a reduction in gross debt by over $100 million, enhancing financial stability.
Negative
Fourth Quarter Revenue Decline: Fourth quarter total revenue was $829 million, representing a 2.6% decrease on a core basis, with total revenues down just under 4% due to unfavorable foreign currency effects.
OEM Sales Decline: OEM sales decreased primarily due to volume reductions in the agriculture and construction end markets, leading to a decline in adjusted earnings per share by 3% to $0.36 compared to the prior year.
Power Transmission Revenue Decline: In the Power Transmission segment, revenues decreased approximately 1% on a core basis, with OEM demand under pressure and adjusted EBITDA margin declining by 30 basis points due to lower top line performance.
Fluid Power Sales Decline: Fluid Power segment sales decreased approximately 5% on a core basis, with industrial OEM sales declining high teens, significantly impacting overall segment performance.
Revenue Decline Forecast: Guidance for 2025 indicates a potential core revenue decline of 0.5% to 3.5%, with a projected 3% headwind from foreign exchange, suggesting continued challenges in revenue generation.
GTES FAQs
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GTES Earning Call Sentiment
Gates Industrial Corporation plc (NYSE:GTES) Q4 2024 Earnings Call Transcript
GTES.N
4.63%Positive
The earnings call reveals mixed signals: a slight revenue decline but record gross margin, strong cash flow, and a robust share repurchase plan. The Q&A highlights concerns over FX impacts and unclear management responses, offset by optimism in personal mobility and auto aftermarket growth. Given the market cap and these mixed factors, a neutral stock price movement is likely.
