Power transmission and fluid power solutions provider Gates Corporation (NYSE: GTES) will be announcing earnings results this Friday morning. Here’s what you need to know.
Gates Industrial Corporation missed analysts’ revenue expectations last quarter, reporting revenues of $851.1 million, flat year on year. It was a slower quarter for the company, with a slight miss of analysts’ organic revenue estimates and EBITDA in line with analysts’ estimates.
Is Gates Industrial Corporation a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Gates Industrial Corporation’s revenue to grow 4.7% year on year, improving from its flat revenue in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Gates Industrial Corporation has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Gates Industrial Corporation’s peers in the industrial machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Worthington delivered year-on-year revenue growth of 16.9%, missing analysts’ expectations by 4%, and GE Aerospace reported revenues up 24.5%, topping estimates by 6%. Worthington’s stock price was unchanged after the resultswhile GE Aerospace was down 3.2%.
Read our full analysis of Worthington’s results here and GE Aerospace’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the industrial machinery stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 8.1% on average over the last month. Gates Industrial Corporation is down 10.9% during the same time and is heading into earnings with an average analyst price target of $31.73 (compared to the current share price of $24.93).
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