Power transmission and fluid power solutions provider Gates Corporation (NYSE:GTES) will be announcing earnings results tomorrow before market open. Here’s what to expect.
Gates Industrial Corporation met analysts’ revenue expectations last quarter, reporting revenues of $898.6 million, down 4% year on year. It was a slower quarter for the company, with underwhelming earnings guidance for the full year and a miss of analysts’ operating margin estimates.
Is Gates Industrial Corporation a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Gates Industrial Corporation’s revenue to decline 4.7% year on year to $831.7 million, a reversal from the 1.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.31 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 6 downward revisions over the last 30 days (we track 8 analysts). Gates Industrial Corporation has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Gates Industrial Corporation’s peers in the industrial machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Applied Industrial posted flat year-on-year revenue, beating analysts’ expectations by 1.5%, and Worthington reported a revenue decline of 17.5%, falling short of estimates by 13.1%. Applied Industrial traded up 3.4% following the results while Worthington was down 5.5%.
Read our full analysis of Applied Industrial’s results here and Worthington’s results here.
Investors in the industrial machinery segment have had steady hands going into earnings, with share prices flat over the last month. Gates Industrial Corporation is up 5.6% during the same time and is heading into earnings with an average analyst price target of $20.50 (compared to the current share price of $18.54).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.