Gates Industrial (NYSE:GTES) Releases FY 2024 Earnings Guidance

Gates Industrial (NYSE:GTES) updated its FY 2024 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 1.330-1.370 for the period, compared to the consensus estimate of 1.310. The company issued revenue guidance of $3.4 billion-$3.5 billion, compared to the consensus revenue estimate of $3.4 billion. Gates Industrial also updated its FY24 guidance to $1.33-1.37 EPS.

Gates Industrial Price Performance

GTES stock traded up $1.35 during trading on Wednesday, hitting $19.61. The stock had a trading volume of 2,329,854 shares, compared to its average volume of 2,990,217. The company has a debt-to-equity ratio of 0.68, a current ratio of 3.11 and a quick ratio of 2.20. Gates Industrial has a twelve month low of $10.73 and a twelve month high of $19.97. The stock has a market capitalization of $5.13 billion, a P/E ratio of 20.10 and a beta of 1.40. The company’s 50-day moving average price is $17.64 and its two-hundred day moving average price is $17.10.

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

Gates Industrial announced that its board has approved a stock buyback plan on Wednesday, July 31st that permits the company to buyback $250.00 million in outstanding shares. This buyback authorization permits the company to reacquire up to 5.4% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s board believes its shares are undervalued.

Analyst Ratings Changes

GTES has been the topic of a number of research analyst reports. Royal Bank of Canada raised Gates Industrial from a “sector perform” rating to an “outperform” rating and boosted their target price for the company from $20.00 to $22.00 in a research report on Monday, August 19th. The Goldman Sachs Group increased their price target on shares of Gates Industrial from $18.00 to $20.00 and gave the company a “neutral” rating in a research note on Thursday, August 1st. Morgan Stanley assumed coverage on Gates Industrial in a research report on Friday, September 6th. They set an “equal weight” rating and a $19.00 target price on the stock. Robert W. Baird reduced their price target on shares of Gates Industrial from $26.00 to $22.00 and set an “outperform” rating for the company in a research report on Thursday, August 1st. Finally, Evercore ISI increased their price objective on 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 investment analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $19.40.

Insider Activity

In other news, Director Wilson S. Neely purchased 11,952 shares of the stock in a transaction that occurred on Wednesday, August 21st. The shares were acquired at an average price of $16.80 per share, for a total transaction of $200,793.60. Following the acquisition, the director now directly owns 6,000 shares in the company, valued at approximately $100,800. The trade was a -200.00 % increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 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.