Gates Industrial Eyes $855.1M Q4 Revenue (+3.1%) and $0.37 EPS Forecast
Last quarter, Gates Industrial generated $855.7 million in revenue, up 3% year-on-year, but missed adjusted operating income estimates and organic revenue forecasts. For Q4, analysts forecast $855.1 million in revenue (+3.1% yoy) and $0.37 in adjusted EPS, while peers Arrow and Graham saw 20%+ revenue gains.
1. Q3 Financial Results
Gates Industrial delivered $855.7 million in Q3 revenue, a 3% increase year-on-year, matching overall forecasts but missing adjusted operating income and organic revenue estimates, marking the fourth revenue miss in two years.
2. Forecast and Analyst Estimates
Analysts project Q4 revenue of $855.1 million, up 3.1% year-on-year compared with a 3.9% decline last year, and adjusted EPS of $0.37 per share, with covering analysts largely maintaining these forecasts over the past month.
3. Peer Performance
In the same quarter, Arrow Electronics reported 20.1% revenue growth and Graham Corporation saw 20.5% growth, beating estimates by 6.6% and 8.3% respectively, and driving share price gains of 12.4% and 15.3%.
4. Stock Momentum and Outlook
Gates Industrial’s share price has risen 19.2% over the past month, outpacing the 8.6% average gain in the engineered components segment, and carries an average analyst price target of $27.17 versus the current $26.76 share price.