Core Viewpoint - Gates Industrial Corporation reported a decline in net sales and net income for the third quarter of 2024, but improved gross margins and adjusted EBITDA margins, leading to an increase in full-year adjusted EPS guidance [2][4][19]. Financial Performance Summary - Third-quarter net sales were $830.7 million, down 4.8% from $872.9 million in the prior year, with a core sales decline of 3.8% [5][6]. - Net income attributable to shareholders was $47.6 million, or $0.18 per diluted share, compared to $78.7 million, or $0.29 per diluted share, in the prior-year quarter [6][26]. - Adjusted net income was $86.9 million, or $0.33 per diluted share, down from $95.9 million, or $0.36 per diluted share, in the prior-year period [6][32]. - Adjusted EBITDA for the third quarter was $182.5 million, with a margin of 22.0%, reflecting a 30 basis point improvement year-over-year [8][14]. Segment Performance - Power Transmission segment net sales decreased 4.3% to $513.4 million, with a core sales decline of 3.3% [13][14]. - Fluid Power segment net sales fell 5.7% to $317.3 million, with a core sales decline of 4.7% [15][16]. Liquidity and Capital Resources - The company generated $115.9 million in cash from operations during the third quarter, with capital expenditures increasing to $28.0 million from $17.4 million in the prior-year quarter [17]. - As of September 28, 2024, total cash and cash equivalents were $574.4 million, with total outstanding debt of $2.4 billion [18]. Updated Guidance - The company updated its full-year 2024 guidance, projecting core sales growth of approximately 4% to 3%, and adjusted EPS guidance increased to $1.33 to $1.37 [19][20].

Wall Street expects a year-over-year decline in earnings on lower revenues when Gates Industrial (GTES) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on Octobe ...

DENVER, Oct. 8, 2024 /PRNewswire/ -- Gates Industrial Corporation plc (NYSE: GTES) will issue its thirdquarter earnings release before the market opens on Wednesday, October 30, 2024. Management will host a webcast and conference call on the same day at 11:00 a.m. Eastern time to discuss Gates Industrial's financial results. The conference call can be accessed as follows: By dialing (888) 414-4601 (domestic) or +1 (646) 960-0313 (international) and requesting the Gates Industrial Corporation Third-Quarter 2 ...

Gates Industrial Corporation plc (GTES) is expanding its data center cooling solutions with the launch of the new Data Master Cooling Hose. This innovative product enhances performance and cleanliness in highperformance computing environments. Developed through Gates' Eco-Innovation process, this new fluid conveyance solution marks a deeper move into the fast-growing data center liquid cooling sector, driven by the increasing demands of compute-intensive technologies like Artificial Intelligence. This innov ...

Expanding its cutting-edge portfolio of data center cooling solutions, the Data Master™ Cooling Hose provides flexibility, performance, and cleanliness designed for high-performance computing environments DENVER, Sept. 10, 2024 /PRNewswire/ -- Gates (NYSE: GTES), a global manufacturer of innovative, highly engineered power transmission and fluid power solutions, is continuing to drive innovation for the data center cooling market with the upcoming launch of the Data Master™ Data Center Cooling Hose. This fl ...

Olivier Le Moal/iStock via Getty Images Intro We initially upgraded Gates Industrial Corporation plc (NYSE:GTES) to a 'Buy' rating in May of last year where we have seen shares return just under 18% over the elapsed timeframe. Due to improving profitability trends, we reiterated our 'Buy' rating in March of this year. However, the performance of shares of Gates Industrial Corporation plc has been poor over the past 5+ months (negative 8% return) which means the stock has continued to underperform the S&P fo ...

Core Insights - Gates has published its 2023 Sustainability Report, highlighting progress in its sustainability strategy across four pillars: Governance, Technology, Environment, and Stewardship [1][5] Governance - The company has established additional governance processes and enhanced reporting to align with global standards, demonstrating a commitment to sustainability [2][5] Technology - Gates has invested in its "GTES" organizational capabilities and leveraged its Eco-Innovation™ process to develop products with a reduced environmental footprint [2] Environment - The company has brought 818,000 kWh of solar energy online and invested in projects to reduce 18 million kWh of natural gas and 7 million kWh of electricity consumption [2] - Gates is actively pursuing decarbonization with 73 ongoing greenhouse gas (GHG) reduction projects and aims to reduce hazardous waste, landfill, and water consumption while increasing the number of zero-waste sites [2] Stewardship - Gates employees are engaged in community service through various volunteer activities, including mentoring in STEM programs and supporting local reforestation and food bank initiatives [4] Health and Safety - In 2023, Gates achieved a 20% decrease in Total Case Incident Rates (TCIR) and a 15% reduction in severe injuries, reflecting the effectiveness of its health and safety initiatives [3] Reporting Standards - The sustainability reporting process adheres to standards set by the International Financial Reporting Standards (IFRS), Sustainability Accounting Standards Board (SASB), and the Task Force on Climate-related Financial Disclosures (TCFD), among others [5]

Company Overview - Gates Industrial reported revenues of $885.5 million for the quarter ended June 2024, missing the Zacks Consensus Estimate by 0.84% and down from $936.3 million year-over-year [4] - The company posted quarterly earnings of $0.36 per share, beating the Zacks Consensus Estimate of $0.35 per share, which is unchanged from the previous year [10] Earnings Performance - The earnings surprise for the recent quarter was 2.86%, with the company previously expected to post earnings of $0.30 per share but actually delivering $0.31, resulting in a surprise of 3.33% [5] - Over the last four quarters, Gates Industrial has consistently surpassed consensus EPS estimates [11] Industry Context - Gates Industrial is part of the Zacks Engineering - R and D Services industry, which is currently ranked in the top 31% of over 250 Zacks industries [3] - The current consensus EPS estimate for the upcoming quarter is $0.35 on revenues of $880 million, and for the current fiscal year, it is $1.35 on revenues of $3.52 billion [8] Stock Performance - Gates Industrial shares have increased approximately 32.1% since the beginning of the year, outperforming the S&P 500's gain of 14% [12] - The stock currently holds a Zacks Rank 5 (Strong Sell), indicating expectations of underperformance in the near future [1]

Denver, CO, July 31, 2024 Jurek continued, "We have trimmed our full year 2024 guidance for core sales, adjusted EBITDA and adjusted earnings per share to reflect softer than expected demand in our First Fit markets during the second half of the year and our normal business seasonality. At the updated midpoint, we still expect to increase our adjusted EBITDA margin by over 100 basis points year-over-year. We are intently focused on driving our various enterprise initiatives and achieving our 2026 financial ...

DENVER, July 17, 2024 /PRNewswire/ -- Gates Industrial Corporation plc (NYSE:GTES) today announced that it has changed the time of its second-quarter 2024 webcast and conference call from 10 a.m. Eastern time to 9 a.m. Eastern time on Wednesday, July 31, 2024. The access information has not changed and is as follows: An audio replay of the conference call will be available from approximately 1:00 p.m. Eastern time on July 31, 2024, until 11:59 p.m. Eastern time on August 7, 2024, and can be accessed domesti ...