Power transmission and fluid power solutions provider Gates Corporation (NYSE: GTES) will be reporting earnings this Friday before market open. Here’s what investors should know.
Gates Industrial Corporation met analysts’ revenue expectations last quarter, reporting revenues of $856.2 million, up 3.2% year on year. It was a slower quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a miss of analysts’ EBITDA estimates.
Is Gates Industrial Corporation a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Gates Industrial Corporation’s revenue to grow 1.8% year on year, a reversal from the 1.7% decrease it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Gates Industrial Corporation has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Gates Industrial Corporation’s peers in the industrial machinery segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Worthington delivered year-on-year revenue growth of 24.4%, beating analysts’ expectations by 8.6%, and Applied Industrial reported revenues up 7.3%, topping estimates by 2.2%. Worthington traded down 4.6% following the results while Applied Industrial’s stock price was unchanged.
Read our full analysis of Worthington’s results here and Applied Industrial’s results here.
There has been positive sentiment among investors in the industrial machinery segment, with share prices up 8.6% on average over the last month. Gates Industrial Corporation is up 9.8% during the same time and is heading into earnings with an average analyst price target of $31.58 (compared to the current share price of $24.84).
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