Gates Industrial (NYSE:GTES) Issues FY24 Earnings Guidance

Gates Industrial (NYSE:GTES) updated its FY24 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of $1.33-1.37 for the period, compared to the consensus 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.

Gates Industrial Stock Performance

GTES traded up $0.17 on Friday, reaching $19.52. The company had a trading volume of 5,263,489 shares, compared to its average volume of 3,052,308. The company has a quick ratio of 2.20, a current ratio of 3.11 and a debt-to-equity ratio of 0.68. Gates Industrial has a 1 year low of $10.94 and a 1 year high of $20.01. The stock has a market capitalization of $5.11 billion, a PE ratio of 23.52 and a beta of 1.40. The stock has a 50-day moving average price of $17.71 and a 200-day moving average price of $17.13.

Gates Industrial (NYSE:GTES) last posted its earnings results on Wednesday, July 31st. The company reported $0.34 earnings per share for the quarter, beating the consensus estimate of $0.33 by $0.01. The business had revenue of $885.50 million during the quarter, compared to the consensus estimate of $893.00 million. Gates Industrial had a return on equity of 9.90% and a net margin of 6.43%. As a group, research analysts forecast that Gates Industrial will post 1.23 EPS for the current fiscal year.

Gates Industrial announced that its board has authorized a stock buyback plan on Wednesday, July 31st that permits the company to repurchase $250.00 million in shares. This repurchase authorization permits the company to purchase up to 5.4% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s management believes its shares are undervalued.

Analyst Upgrades and Downgrades

Several analysts recently commented on the stock. Royal Bank of Canada upgraded shares of Gates Industrial from a “sector perform” rating to an “outperform” rating and upped their price target for the company from $20.00 to $22.00 in a research report on Monday, August 19th. Evercore ISI raised their price target on Gates Industrial from $15.00 to $16.00 and gave the stock an “in-line” rating in a report on Monday, August 19th. Robert W. Baird reduced their price objective on Gates Industrial from $26.00 to $22.00 and set an “outperform” rating for the company in a research note on Thursday, August 1st. The Goldman Sachs Group lifted their target price on Gates Industrial from $18.00 to $20.00 and gave the company a “neutral” rating in a research note on Thursday, August 1st. Finally, Morgan Stanley started coverage on Gates Industrial in a research note on Friday, September 6th. They set an “equal weight” rating and a $19.00 price target for the company. Four equities research analysts have rated the stock with a hold rating and six have given a buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $19.80.

Insiders Place Their Bets

In related news, Director Wilson S. Neely bought 11,952 shares of the company’s stock in a transaction on Wednesday, August 21st. The stock was bought at an average cost of $16.80 per share, with a total value of $200,793.60. Following the completion of the acquisition, the director now owns 6,000 shares in the company, valued at approximately $100,800. This represents a -200.00 % increase in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Insiders own 2.30% of the company’s stock.

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.