NYSE$GTES
Gates Industrial Corporation plc · Q2 2022 earnings
Q2 2022 earnings · · Investor relations
Briefing
Gates Industrial's financial performance showed solid improvement from the first quarter, driven by constructive demand trends and pricing actions offsetting inflation, but was impacted by FX headwinds and supply chain challenges.
Gates Industrial reported Q2 2022 results with net sales of $906.8 million, a slight decrease of 0.9% year-over-year, but included core revenue growth of 3.6%. Net income attributable to shareholders was $53.1 million, or $0.19 per diluted share, while Adjusted Net Income was $90.2 million, or $0.32 per diluted share. The company is updating its full-year 2022 outlook to reflect current market conditions, expecting core revenue growth in the range of 6% to 9%.
- Net sales reached $906.8 million, including a 3.6% core revenue growth.
- Net income attributable to shareholders was $53.1 million, or $0.19 per diluted share.
- Adjusted Net Income amounted to $90.2 million, or $0.32 per diluted share.
- Adjusted EBITDA was reported as $180.1 million.
Headline financials
Revenue & EPS history
Gates Industrial · Revenue · Quarterly
$907M
Revenue by segment
Gates Industrial · $907M total across 2 segments · Q2 2022
- Power Transmission$543M—59.9%
- Fluid Power$364M—40.1%
Forward guidance
The Company is updating its full-year 2022 outlook. The Company continues to see the demand environment as constructive and now expects core revenue growth in the range of 6% to 9%. Adjusted EBITDA is now expected in the range of $705 million to $755 million. Adjusted Earnings per Share are now expected to be between $1.15 and $1.25.
Tailwinds
- Constructive demand environment
- Expects core revenue growth in the range of 6% to 9%
- Adjusted EBITDA is now expected in the range of $705 million to $755 million
- Adjusted Earnings per Share are now expected to be between $1.15 and $1.25
- Free Cash Flow conversion is now expected to be greater than 75% of Adjusted Net Income
Headwinds
- Negative impact of larger foreign currency headwinds from a stronger U.S. dollar
- Continued supply chain challenges
- China exhibiting a slower pace of recovery from the COVID lockdowns
- Tax and other headwinds of $0.27 per share at the midpoint, primarily due to benefits from certain discrete tax items in 2021
- Higher inventory levels to mitigate the supply chain reliability challenges
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2022
-0.2%
Avg return
Earnings day
-0.7%
Avg return
5 days after
-0.1%
Avg return
30 days after
46%
16 / 35 earnings
Positive
+15.5%
Q2 2018
Best reaction
-19.3%
Q2 2019
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -1.2% | +2.5% | +1.2% | |
| Q4 2025 | +3.8% | +3.1% | -14.2% | |
| Q3 2025 | -12.8% | -14.3% | -11.9% | |
| Q1 2025 | +5.2% | +11.2% | +17.6% | |
| Q4 2024 | +11.8% | +7.8% | -4.5% | |
| Q3 2024 | +6.0% | +7.5% | +21.4% | |
| Q2 2024 | +0.1% | -8.9% | +2.4% | |
| Q1 2024 | -6.6% | -6.5% | -1.1% | |
| Q4 2023 | -4.4% | -3.7% | +22.4% | |
| Q3 2023 | +1.3% | +1.1% | +13.2% | |
| Q2 2023 | -4.1% | -11.9% | -7.0% | |
| Q1 2023 | +3.8% | +1.5% | -8.3% | |
| Q4 2022 | +5.6% | +6.9% | +2.6% | |
| Q3 2022 | +2.3% | +1.6% | +5.9% | |
| Q2 2022 | -3.4% | -1.5% | -13.1% | |
| Q1 2022 | -0.9% | -7.8% | -2.6% | |
| Q4 2021 | +0.0% | -2.3% | +2.0% | |
| Q3 2021 | -6.4% | -5.4% | -10.1% | |
| Q2 2021 | -4.1% | -10.3% | -10.7% | |
| Q1 2021 | -0.6% | +1.6% | +3.4% | |
| Q3 2020 | +0.7% | +2.0% | +8.4% | |
| Q2 2020 | +8.6% | +8.1% | +4.0% | |
| Q1 2020 | +1.9% | +10.5% | +34.2% | |
| Q4 2019 | +7.7% | +1.3% | -22.6% | |
| Q3 2019 | +8.0% | +8.1% | +6.2% | |
| Q2 2019 | -19.3% | -19.1% | -2.8% | |
| Q1 2019 | -16.0% | -17.4% | -30.0% | |
| Q4 2016 | -1.5% | -0.2% | -3.3% | |
| Q4 2018 | +6.7% | +5.0% | +1.3% | |
| Q3 2017 | -7.1% | +0.3% | -4.7% | |
| Q3 2018 | -0.4% | -4.9% | -2.1% | |
| Q2 2018 | +15.5% | +15.6% | +17.1% | |
| Q1 2017 | -2.3% | -1.6% | -3.6% | |
| Q1 2018 | -3.4% | -3.5% | -4.4% | |
| Q4 2017 | -0.6% | +0.6% | -10.0% | |
| Q2 2017 | — | — | — | |
| Q3 2016 | — | — | — | |
| Q2 2016 | — | — | — | |
| Q1 2016 | — | — | — | |
| Q1 2014 | — | — | — | |
| Q4 2013 | — | — | — | |
| Q3 2013 | — | — | — | |
| Q2 2013 | — | — | — | |
| Q1 2013 | — | — | — | |
| Q4 2012 | — | — | — | |
| Q3 2012 | — | — | — |
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