NYSE$GTES
Gates Industrial Corporation plc · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
Gates Industrial's financial performance increased in the second quarter of 2023, marked by record net sales and core revenue growth.
Gates Industrial reported a strong second quarter in 2023, with record net sales of $936.3 million, up 3.3% year-over-year, and core revenue growth of 3.9%. Net income attributable to shareholders was $64.9 million, or $0.23 per diluted share, while adjusted net income per diluted share reached $0.36. The company is raising its full-year EPS guidance.
- Net sales reached a record $936.3 million, a 3.3% increase from the prior year, driven by a 3.9% core revenue growth.
- Net income attributable to shareholders increased to $64.9 million, or $0.23 per diluted share.
- Adjusted net income per diluted share was reported at $0.36, up from $0.32 in the prior year.
- The company is raising its 2023 full-year EPS guidance, reflecting confidence in future performance.
Headline financials
Revenue & EPS history
Gates Industrial · Revenue · Quarterly
$936M
Revenue by segment
Gates Industrial · $936M total across 2 segments · Q2 2023
- Power Transmission$574M+5.7%61.3%
- Fluid Power$362M-0.4%38.7%
Forward guidance
The company is updating its full year financial guidance for 2023. Core Revenue Growth is expected to be between 0 to 2%. Adjusted EBITDA is expected to be between $710 to $740 Million. Adjusted EPS is expected to be between $1.18 to $1.24. Capital Expenditures are expected to be less than $100 Million and Free Cash Flow Conversion is expected to be 100%.
Tailwinds
- Adjusted EPS guidance increased by $0.03 at the midpoint.
- Capital expenditures are expected to be slightly lower than previously anticipated.
- Free cash flow conversion remains at 100%.
- Adjusted EBITDA guidance midpoint remains unchanged.
- Maintaining strong focus on cash flow generation.
Headwinds
- Core Revenue Growth guidance reduced by 2% at the midpoint.
- Slower demand trends expected in the second half of the year.
- Unspecified risks associated with international operations.
- Potential macroeconomic factors beyond the company's control.
- Cybersecurity risks and the need to maintain manufacturing facility operations.
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 2023
-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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