NYSE$GTES
Gates Industrial Corporation plc · Q3 2024 earnings
Q3 2024 earnings · · Investor relations
Briefing
Gates Industrial's financial performance declined due to core sales decrease and unfavorable currency effects, but gross margin improved through enterprise initiatives.
Gates Industrial reported a decrease in net sales by 4.8% to $830.7 million, with a core sales decline of 3.8%. Net income attributable to shareholders was $47.6 million, or $0.18 per diluted share, while adjusted net income per diluted share was $0.33. The company is updating its full year 2024 guidance.
- Net sales decreased by 4.8% to $830.7 million, with a 3.8% core sales decline.
- Net income attributable to shareholders was $47.6 million, or $0.18 per diluted share.
- Adjusted Net Income per diluted share reached $0.33.
- The company is updating its full year 2024 Adjusted EPS guidance.
Headline financials
Revenue & EPS history
Gates Industrial · Revenue · Quarterly
$831M
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 2024 guidance. Core Sales Growth is expected to be between (~4%) to (~3%). Adjusted EBITDA is expected to be $745 to $765 Million. Adjusted EPS is expected to be $1.33 to $1.37. Capital Expenditures are expected to be ~$100 Million. Free Cash Flow Conversion is expected to be 90%+
Tailwinds
- Adjusted EPS is expected to be $1.33 to $1.37, an increase of +$0.03 from prior guidance.
- Adjusted EBITDA is expected to be $745 to $765 Million.
- Capital Expenditures are expected to be ~$100 Million.
- Free Cash Flow Conversion is expected to be 90%+
- Share-based metrics in the Company’s guidance do not include the potential effect of incremental share repurchases.
Headwinds
- Core Sales Growth is expected to be between (~4%) to (~3%).
- GAAP financial measures on a forward-looking basis are not accessible.
- Reconciling information is not available without unreasonable effort.
- We have not provided reconciliations for forward-looking non-GAAP measures.
- We are unable to address the probable significance of the unavailable information, which could be material to future results.
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 Q3 2024
-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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