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Gates Industrial Corp Plc (GTES)
NYSE:GTES
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Earnings Data
Report Date
Feb 10, 2025TBA Not Confirmed
Period Ending
2024 (Q4)Consensus EPS Forecast
$0.33Last Year’s EPS
$0.39Same Quarter Last Year
Moderate Buy
Based on 7 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Oct 30, 2024
|% Change Since: 11.61%
|Next Earnings Date:Feb 10, 2025
Earnings Call Sentiment|Neutral
The earnings call presented a mixed picture with several positive developments such as improvements in adjusted EBITDA margin, a share repurchase program, and growth in certain geographic regions. However, these were offset by significant challenges, including declines in core sales, particularly in the industrial OEM sector, and lower earnings per share. The company is taking measures to optimize its footprint and is positioning for future growth, but current market conditions remain challenging.Company Guidance
During the Gates Industrial Corporation Q3 2024 earnings call, the company provided several key metrics and guidance updates. It was reported that the team executed well despite a 4% decline in core sales, largely due to weaker demand in agriculture, construction, and personal mobility markets. However, replacement sales rose by 1%, driven by growth in automotive replacement, while OEM sales fell by low double digits. The company achieved a 30 basis points increase in adjusted EBITDA margin, supported by a 110 basis points improvement in gross margin. Gates also reported a decrease in its net leverage ratio to 2.4x from 2.6x in the prior year, aided by a $125 million share repurchase. For 2024, Gates raised its adjusted EPS midpoint to $1.35, maintaining its full-year adjusted EBITDA midpoint at $755 million. Sales for Q3 were $831 million, reflecting a 3.8% core decrease, with adjusted EBITDA at approximately $183 million, equating to a 22% margin. The company narrowed its adjusted EBITDA guidance range to $745 million to $765 million while increasing its adjusted EPS guidance range to $1.33 to $1.37. The call also highlighted the ongoing efforts in footprint optimization and enterprise initiatives aimed at achieving $40 million in annualized savings by the end of 2026, contributing over 100 basis points to the adjusted EBITDA margin.Increase in Replacement Sales
Total replacement sales increased by 1%, led by modest growth in automotive replacement.
Adjusted EBITDA Margin Improvement
Adjusted EBITDA margin increased by 30 basis points, driven by a 110 basis point increase in gross margin.
Share Repurchase Program
The company returned capital to shareholders via a $125 million share repurchase.
Geographic Growth
Key Asian geographies and South America generated core sales growth.
Adjusted Earnings Per Share Guidance
Raised adjusted EPS midpoint to $1.35 and increased the adjusted earnings per share range to $1.33 to $1.37.
Net Leverage Ratio Improvement
Net leverage ratio declined to 2.4x from 2.6x the previous year.
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GTES Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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GTES Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
| Oct 30, 2024 | $18.26 | $19.30 | +5.70% |
| Jul 31, 2024 | $17.73 | $18.59 | +4.85% |
| May 01, 2024 | $17.62 | $16.43 | -6.75% |
| Feb 08, 2024 | $13.26 | $12.53 | -5.51% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Gates Industrial Corp Plc (GTES) report earnings?
Gates Industrial Corp Plc (GTES) is schdueled to report earning on Feb 10, 2025, TBA Not Confirmed.
What is Gates Industrial Corp Plc (GTES) earnings time?
Gates Industrial Corp Plc (GTES) earnings time is at Feb 10, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is GTES EPS forecast?
GTES EPS forecast for the fiscal quarter 2024 (Q4) is $0.33.
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