Gates Industrial (NYSE:GTES) Releases FY24 Earnings Guidance

Gates Industrial (NYSE:GTES) issued an update on its FY24 earnings guidance on Wednesday morning. The company provided EPS guidance of $1.33-1.37 for the period, compared to the consensus EPS estimate of $1.31. The company issued revenue guidance of +3-4% yr/yr to $3.65-3.712 billion, compared to the consensus revenue estimate of $3.41 billion. Gates Industrial also updated its FY 2024 guidance to 1.330-1.370 EPS.

Analyst Upgrades and Downgrades

GTES has been the subject of a number of research reports. Royal Bank of Canada upgraded Gates Industrial from a “sector perform” rating to an “outperform” rating and lifted their price target for the stock from $20.00 to $22.00 in a research note on Monday, August 19th. Robert W. Baird lowered their price target on Gates Industrial from $26.00 to $22.00 and set an “outperform” rating for the company in a report on Thursday, August 1st. The Goldman Sachs Group raised their price objective on Gates Industrial from $18.00 to $20.00 and gave the stock a “neutral” rating in a research note on Thursday, August 1st. Morgan Stanley initiated coverage on shares of Gates Industrial in a research note on Friday, September 6th. They set an “equal weight” rating and a $19.00 target price for the company. Finally, Evercore ISI raised their price target on shares of Gates Industrial from $15.00 to $16.00 and gave the stock an “in-line” rating in a research report on Monday, August 19th. Four equities research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $19.40.

Gates Industrial Stock Performance

Shares of NYSE GTES opened at $18.77 on Wednesday. Gates Industrial has a 1 year low of $10.73 and a 1 year high of $19.07. The firm has a market cap of $4.91 billion, a P/E ratio of 20.10 and a beta of 1.40. The stock has a fifty day moving average price of $17.64 and a two-hundred day moving average price of $17.10. The company has a debt-to-equity ratio of 0.68, a quick ratio of 2.20 and a current ratio of 3.11.

Gates Industrial (NYSE:GTES) last issued its quarterly earnings results on Wednesday, July 31st. The company reported $0.34 earnings per share for the quarter, beating analysts’ consensus estimates of $0.33 by $0.01. The company had revenue of $885.50 million during the quarter, compared to the consensus estimate of $893.00 million. Gates Industrial had a net margin of 7.24% and a return on equity of 10.27%. Research analysts forecast that Gates Industrial will post 1.23 EPS for the current fiscal year.

Gates Industrial announced that its Board of Directors has approved a stock repurchase plan on Wednesday, July 31st that authorizes the company to buyback $250.00 million in shares. This buyback authorization authorizes the company to repurchase up to 5.4% of its shares through open market purchases. Shares buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.

Insider Activity

In other news, Director Wilson S. Neely bought 11,952 shares of the firm’s stock in a transaction on Wednesday, August 21st. The stock was bought at an average cost of $16.80 per share, for a total transaction of $200,793.60. Following the completion of the acquisition, the director now directly owns 6,000 shares in the company, valued at $100,800. This represents a -200.00 % increase in their position. The purchase was disclosed in a filing with the SEC, which is available at this hyperlink. 2.30% of the stock is currently owned by company insiders.

Gates Industrial Company Profile

Gates Industrial Corporation PLC designs and manufactures power transmission equipment. Its products serves harsh and hazardous industries such as agriculture, construction, manufacturing and energy, to everyday consumer applications such as printers, power washers, automatic doors and vacuum cleaners and virtually every form of transportation.