Overview
Power transmission firm's Q4 revenue slightly beat analyst expectations, with a 3.2% increase yr/yr
Adjusted EPS for Q4 beat analyst expectations
Adjusted EBITDA for Q4 missed analyst estimates
Outlook
Company expects 2026 core sales growth between 1% and 4%
Gates Industrial forecasts 2026 adjusted EBITDA of $775 mln to $835 mln
Company anticipates 2026 adjusted EPS of $1.52 to $1.68
Result Drivers
STRATEGIC INITIATIVES - Gates Industrial's CEO highlighted strategic growth initiatives as a key driver for the quarter's performance
COST POSITION IMPROVEMENT - The company improved its cost position, contributing to its financial results
CASH FLOW GENERATION - Gates generated a substantial increase in cash from operating activities, strengthening its balance sheet
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Sales | Slight Beat* | $856.20 mln | $853.002 mln (9 Analysts) |
Q4 Adjusted EPS | Beat | $0.38 | $0.37 (12 Analysts) |
Q4 EPS | $0.20 | ||
Q4 Net Income | $51.30 mln | ||
Q4 Adjusted EBITDA | Miss | $187.80 mln | $193.71 mln (9 Analysts) |
Q4 Net Income continuing operations | $56.40 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the industrial machinery & equipment peer group is "buy"
Wall Street's median 12-month price target for Gates Industrial Corporation PLC is $27.00, about 1.8% above its February 11 closing price of $26.51
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 13 three months ago
Press Release: ID:nPnc2Yr8Ta
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)