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Gates Industrial Corp (GTES)
:GTES
Earnings Data
Report Date
Apr 30, 2025TBA Not Confirmed
Period Ending
2025 (Q1)Consensus EPS Forecast
0.33Last Year’s EPS
0.31Same Quarter Last Year
Strong Buy
Based on 8 Analysts Ratings
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Earnings Call Summary
Earnings Call Date:Feb 06, 2025
|% Change Since: 7.13%
|Next Earnings Date:Apr 30, 2025
Earnings Call Sentiment|Neutral
The earnings call reflected a mix of positive achievements and some challenges. Gates Industrial achieved significant margin improvements and reduced leverage while dealing with a decline in core revenues and pressures in OEM sales, particularly in agriculture and construction. The company's strategic initiatives in personal mobility and automotive replacement showed promising growth, and the successful debt refinancing positioned them well financially. However, foreign currency headwinds and industrial market weaknesses pose ongoing challenges.Company Guidance
During the Gates Industrial Corporation's fourth quarter and full year 2024 earnings call, several key metrics and guidance details were discussed. The company reported a 140 basis points increase in adjusted EBITDA margins for 2024, surpassing initial forecasts despite a challenging demand environment. Adjusted earnings per share (EPS) and adjusted EBITDA dollars reached record levels. The company also achieved a gross margin of 40.4% in the fourth quarter, marking a record for that period, driven by enterprise initiatives and favorable channel mix. Gates successfully reduced its net leverage ratio to 2.2x from 2.3x at the end of 2023, with a target range of 1 to 2x by 2026. For 2025, Gates projected core revenue growth between -0.5% and 3.5%, with an adjusted EBITDA guidance range of $735 million to $795 million, reflecting a 50 basis point margin improvement. The company plans to spend more on capital expenditures to support high-return projects. Additionally, the first quarter of 2025 is expected to see total revenues between $805 million and $835 million, with core revenues down approximately 1% at the midpoint.Adjusted EBITDA Margin Growth
Gates Industrial grew adjusted EBITDA margins by 140 basis points in 2024, significantly exceeding their initial forecast despite a challenging demand environment.
Record Adjusted Earnings Per Share
The company achieved record adjusted earnings per share and adjusted EBITDA dollars in 2024.
Debt Refinancing and Leverage Reduction
Successfully refinanced debt stack, lowered financing costs, and reduced net leverage ratio from 2.3x to 2.2x.
Stock Repurchase
Repurchased $175 million of stock, supporting Blackstone's sell down and facilitating their exit prior to year-end.
Personal Mobility Core Growth
Personal mobility core growth increased for the first time in seven quarters, expanding approximately 20%.
Automotive Replacement Channel Growth
Automotive replacement grew high single digits, contributing to the stability of the replacement business.
High Free Cash Flow Conversion
Achieved free cash flow conversion of 168% in the fourth quarter, bringing the full year conversion to 74%.
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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 |
|---|---|---|---|
| Feb 06, 2025 | $20.77 | $23.22 | +11.80% |
| 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% |
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 (GTES) report earnings?
Gates Industrial Corp (GTES) is schdueled to report earning on Apr 30, 2025, TBA Not Confirmed.
What is Gates Industrial Corp (GTES) earnings time?
Gates Industrial Corp (GTES) earnings time is at Apr 30, 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 2025 (Q1) is 0.33.
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