Shares of Gates Industrial Corp PLC (NYSE: GTES) are soaring 5.01% in intraday trading on Wednesday after the company reported better-than-expected first-quarter results and reaffirmed its full-year guidance.

The Denver-based manufacturer of power transmission and fluid power systems posted adjusted earnings per share of $0.36 for the quarter, surpassing the analyst consensus estimate of $0.33 by 9.09%. This represents a 5.88% increase from the $0.34 per share reported in the same period last year. Revenue for the quarter came in at $847.6 million, beating the analyst forecast of $822.88 million by 3% despite a 1.74% year-over-year decrease.

Gates Industrial's strong performance was driven by core sales growth of 1.4%, with its Power Transmission segment leading the way at 2.1% growth. The company's CEO, Ivo Jurek, highlighted strong growth in the Auto Replacement and Personal Mobility end markets as key contributors to the positive results. Additionally, the company reported an improvement in gross margin compared to the previous year.

Investors were further encouraged by Gates Industrial's decision to reiterate its full-year 2025 guidance. The company maintains its outlook for adjusted earnings per share in the range of $1.36 to $1.52, signaling confidence in its ability to navigate the current macroeconomic environment. This reaffirmation, coupled with the strong Q1 results, appears to be driving the stock's significant uptick today as the market responds positively to the company's resilience and growth prospects.