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Dec 30, 2023
Gates Industrial Q4 2023 Earnings Report
Gates Industrial's financial performance declined slightly, but margins improved and cash flow was strong.
Key Takeaways
Gates Industrial reported a decrease in net sales for the fourth quarter of 2023, with a core revenue decline. However, the company achieved solid margin expansion and robust operating cash flow. Full-year results showed slight revenue growth and significant improvement in free cash flow.
Fourth-quarter net sales decreased by 3.4%, with a 4.6% decline in core revenue.
Net income attributable to shareholders was $62.9 million, or $0.24 per diluted share.
Adjusted EBITDA margin increased by 290 basis points to 21.5%.
The company introduced 2024 financial guidance and approved a $100 million share repurchase authorization.
Revenue by Segment
Forward Guidance
The Company is introducing full year financial guidance for 2024:
Positive Outlook
- Core revenue growth in the range of (3%) to +1% year-over-year
- Adjusted EBITDA of $725 million to $785 million
- Adjusted Earnings Per Share of $1.28 to $1.43
- Capital Expenditures of approximately $100 million
- Free Cash Flow conversion exceeding 90%
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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