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Sep 28, 2024
Gates Industrial Q3 2024 Earnings Report
Gates Industrial's financial performance declined due to core sales decrease and unfavorable currency effects, but gross margin improved through enterprise initiatives.
Key Takeaways
Gates Industrial reported a decrease in net sales by 4.8% to $830.7 million, with a core sales decline of 3.8%. Net income attributable to shareholders was $47.6 million, or $0.18 per diluted share, while adjusted net income per diluted share was $0.33. The company is updating its full year 2024 guidance.
Net sales decreased by 4.8% to $830.7 million, with a 3.8% core sales decline.
Net income attributable to shareholders was $47.6 million, or $0.18 per diluted share.
Adjusted Net Income per diluted share reached $0.33.
The company is updating its full year 2024 Adjusted EPS guidance.
Revenue by Segment
Forward Guidance
The Company is updating its full year 2024 guidance. Core Sales Growth is expected to be between (~4%) to (~3%). Adjusted EBITDA is expected to be $745 to $765 Million. Adjusted EPS is expected to be $1.33 to $1.37. Capital Expenditures are expected to be ~$100 Million. Free Cash Flow Conversion is expected to be 90%+
Positive Outlook
- Adjusted EPS is expected to be $1.33 to $1.37, an increase of +$0.03 from prior guidance.
- Adjusted EBITDA is expected to be $745 to $765 Million.
- Capital Expenditures are expected to be ~$100 Million.
- Free Cash Flow Conversion is expected to be 90%+
- Share-based metrics in the Company’s guidance do not include the potential effect of incremental share repurchases.
Challenges Ahead
- Core Sales Growth is expected to be between (~4%) to (~3%).
- GAAP financial measures on a forward-looking basis are not accessible.
- Reconciling information is not available without unreasonable effort.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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