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 Up 2.8 %

Gates Industrial stock opened at $18.77 on Wednesday. The company has a market capitalization of $4.91 billion, a P/E ratio of 20.10 and a beta of 1.40. Gates Industrial has a 1-year low of $10.73 and a 1-year high of $19.07. The firm’s fifty day simple moving average is $17.64 and its 200-day simple moving average is $17.10. The company has a current ratio of 3.11, a quick ratio of 2.20 and a debt-to-equity ratio of 0.68.

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 company had revenue of $885.50 million for the quarter, compared to analyst estimates of $893.00 million. Gates Industrial had a return on equity of 10.27% and a net margin of 7.24%. Sell-side analysts forecast that Gates Industrial will post 1.23 earnings per share for the current fiscal year.

Gates Industrial declared that its Board of Directors has authorized a share buyback plan on Wednesday, July 31st that authorizes the company to repurchase $250.00 million in outstanding shares. This repurchase authorization authorizes the company to purchase up to 5.4% of its shares through open market purchases. Shares repurchase plans are generally a sign that the company’s board believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on GTES. Evercore ISI upped their target price 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. Morgan Stanley assumed coverage on shares of Gates Industrial in a report on Friday, September 6th. They set an “equal weight” rating and a $19.00 price objective for the company. The Goldman Sachs Group lifted their target price on shares of Gates Industrial from $18.00 to $20.00 and gave the stock a “neutral” rating in a report on Thursday, August 1st. Robert W. Baird cut their target price 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, Royal Bank of Canada raised Gates Industrial from a “sector perform” rating to an “outperform” rating and raised their price target for the company from $20.00 to $22.00 in a research report on Monday, August 19th. Four equities research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $19.40.

Insiders Place Their Bets

In other Gates Industrial news, Director Wilson S. Neely bought 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, with a total value of $200,793.60. Following the completion of the purchase, the director now directly owns 6,000 shares in the company, valued at $100,800. The trade was a -200.00 % increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through the SEC website. Corporate 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.