Shares of Gates Industrial Corp PLC (NYSE: GTES) surged 5.01% during Wednesday's trading session after the company reported better-than-expected first-quarter results and reaffirmed its full-year guidance. The industrial manufacturer's strong performance and positive outlook boosted investor confidence, driving the stock higher.

Gates Industrial reported Q1 adjusted earnings per share of $0.36, 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. The company's quarterly sales came in at $847.6 million, beating the analyst consensus estimate of $822.88 million by 3%. Although this figure represents a slight 1.74% decrease from the $862.6 million reported in the previous year, the results were still well-received by the market.

Notably, Gates Industrial demonstrated solid core sales growth of 1.4% and reported adjusted EBITDA of $187.3 million, which exceeded analyst expectations. The company's CEO, Ivo Jurek, highlighted strong growth in the Auto Replacement and Personal Mobility end markets. Despite acknowledging a more uncertain business environment since the start of the year, management expressed confidence in the company's competitive position and reaffirmed its full-year 2025 guidance. This positive outlook, combined with the earnings beat, likely contributed to the stock's significant jump in value during the trading session.