Gates Industrial (NYSE:GTES) Issues FY24 Earnings Guidance

Gates Industrial (NYSE:GTES) updated its FY24 earnings guidance on Wednesday. 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.

Gates Industrial Trading Up 0.9 %

NYSE GTES traded up $0.17 during mid-day trading on Friday, reaching $19.52. 5,263,489 shares of the stock were exchanged, compared to its average volume of 3,052,308. The stock has a market capitalization of $5.11 billion, a PE ratio of 23.52 and a beta of 1.40. 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 has a 1-year low of $10.94 and a 1-year high of $20.01. The business’s fifty day simple moving average is $17.71 and its 200 day simple moving average is $17.13.

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

Gates Industrial announced that its board has initiated a share repurchase plan on Wednesday, July 31st that authorizes the company to repurchase $250.00 million in shares. This repurchase authorization authorizes the company to repurchase up to 5.4% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board believes its shares are undervalued.

Analyst Ratings Changes

A number of equities analysts have weighed in on GTES shares. Evercore ISI increased 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 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 research report on Thursday, August 1st. Morgan Stanley began coverage on Gates Industrial in a research note on Friday, September 6th. They issued an “equal weight” rating and a $19.00 price objective on the stock. Royal Bank of Canada raised shares of Gates Industrial from a “sector perform” rating to an “outperform” rating and lifted their price target for the company from $20.00 to $22.00 in a research report on Monday, August 19th. Finally, The Goldman Sachs Group lifted their target price on shares of Gates Industrial from $18.00 to $20.00 and gave the company a “neutral” rating in a report on Thursday, August 1st. Four research analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $19.80.

Insider Buying and Selling

In related news, Director Wilson S. Neely purchased 11,952 shares of Gates Industrial stock in a transaction dated Wednesday, August 21st. The shares were acquired at an average price of $16.80 per share, with a total value of $200,793.60. Following the completion of the transaction, the director now owns 6,000 shares of the company’s stock, valued at approximately $100,800. This trade represents a -200.00 % increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 2.30% of the company’s stock.

About Gates Industrial

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.