Gates Industrial (NYSE:GTES – Get Free Report) released its quarterly earnings data on Friday. The company reported $0.47 earnings per share for the quarter, beating the consensus estimate of $0.44 by $0.03, FiscalAI reports. Gates Industrial had a return on equity of 10.11% and a net margin of 10.37%. The firm had revenue of $903.60 million during the quarter, compared to the consensus estimate of $904.77 million. During the same period in the previous year, the company posted $0.39 earnings per share. The firm’s quarterly revenue was up 5.6% on a year-over-year basis.
Here are the key takeaways from Gates Industrial’s conference call:
- Gates reported solid third-quarter execution, with core sales up 5.5%, adjusted EBITDA up 10%, and record adjusted EBITDA margin of 23.8% and adjusted EPS of $0.47. Growth was led by industrial markets, commercial on-highway, and personal mobility.
- Management raised full-year adjusted EBITDA guidance to $809 million–$823 million and adjusted EPS guidance to $1.66–$1.72, while maintaining its 3.5% midpoint for core sales growth. Fourth-quarter core revenue growth is expected to accelerate to approximately 6.5%.
- Industrial demand continued to broaden, with North American industrial OEM sales up more than 20%, industrial aftermarket sales accelerating, and global book-to-bill remaining above 1.0. Management said the improving cycle provides a favorable setup for 2027, including a potential recovery in agriculture.
- Strategic growth areas are gaining traction: personal mobility sales rose approximately 35% and data-center revenue increased about 2.5 times year over year. Gates is adding products, commercial resources, and capacity in data-center applications, while targeting sustained 20%–30% growth in personal mobility over the next several years.
- Fourth-quarter margins are expected to face normal seasonal pressure, less favorable price-cost timing, and roughly a 100-basis-point year-over-year headwind from higher variable compensation. Fluid Power margins are also being weighed down by investments in data centers and broader product-development and commercial initiatives.
Gates Industrial Price Performance
Shares of GTES stock opened at $23.80 on Friday. The stock’s 50-day moving average is $26.05 and its 200 day moving average is $25.75. Gates Industrial has a 1-year low of $20.88 and a 1-year high of $30.34. The company has a debt-to-equity ratio of 0.58, a current ratio of 3.24 and a quick ratio of 2.36. The company has a market cap of $6.02 billion, a P/E ratio of 16.52 and a beta of 1.28.
Gates Industrial News Summary
Here are the key news stories impacting Gates Industrial this week:
- Positive Sentiment: Third-quarter adjusted earnings were $0.47 per share, exceeding analyst estimates of $0.44-$0.45 and rising from $0.39 a year earlier. Net sales increased 5.6% year over year to $903.6 million, broadly in line with expectations. Gates Industrial Reports Third-Quarter 2026 Results
- Positive Sentiment: Management raised its fiscal 2026 outlook and now expects adjusted EPS of $1.66 to $1.72. The company is also targeting approximately 6.5% core sales growth in the fourth quarter, suggesting continued demand momentum. Gates anticipates 2026 adjusted EPS and Q4 core growth
- Neutral Sentiment: Reported net income attributable to shareholders was $86.5 million, or $0.34 per diluted share. Core sales grew 5.5%, while the company posted a 10.37% net margin and 10.11% return on equity. Gates Industrial third-quarter earnings results
- Negative Sentiment: Revenue merely matched expectations, and the stock’s decline on unusually heavy trading suggests the earnings beat and guidance increase did not fully satisfy investors. The market may have been looking for a larger forecast upgrade, stronger margins, or more evidence that growth can accelerate beyond the current outlook. Gates Industrial Q3 income rises and raises FY26 guidance
Insider Buying and Selling
In other Gates Industrial news, Director Peifang Zhang sold 6,000 shares of the business’s stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $29.56, for a total value of $177,360.00. Following the completion of the transaction, the director directly owned 44,044 shares in the company, valued at approximately $1,301,940.64. The trade was a 11.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Corporate insiders own 2.80% of the company’s stock.
Wall Street Analysts Forecast Growth
GTES has been the topic of a number of research reports. Wells Fargo & Company raised their target price on shares of Gates Industrial from $26.00 to $30.00 and gave the company an “equal weight” rating in a research report on Monday, August 3rd. KeyCorp upped their price target on shares of Gates Industrial from $31.00 to $34.00 and gave the stock an “overweight” rating in a research report on Monday, August 3rd. Citigroup upped their price target on shares of Gates Industrial from $33.00 to $35.00 and gave the stock a “buy” rating in a research report on Monday, August 3rd. Wall Street Zen downgraded shares of Gates Industrial from a “strong-buy” rating to a “buy” rating in a research note on Saturday, October 10th. Finally, Weiss Ratings lowered shares of Gates Industrial from a “buy (b)” rating to a “buy (b-)” rating in a report on Friday, October 23rd. Nine analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average target price of $32.45.
View Our Latest Stock Analysis on GTES
Gates Industrial Company Profile
Gates Industrial Corporation plc (NYSE: GTES) is a manufacturer of engineered power transmission and fluid power products. The company develops solutions designed to transfer power, control motion, and manage the flow of fluids in industrial and mobile applications.
Its product portfolio includes synchronous and V-belts, belt drives, hoses, hydraulic assemblies, couplings, tensioners, pulleys, and related components. Gates serves original equipment manufacturers, distributors, and aftermarket customers across industries such as automotive, agriculture, construction, energy, manufacturing, and general industrial equipment.
The company traces its roots to the Gates Rubber Company, founded in 1911 in Denver, Colorado.
Read More
- Five stocks we like better than Gates Industrial
- L3Harris Stock Took a Beating—Is a 20% Rebound Next?
- Starbucks Says Its Turnaround Is Done—The Numbers Make a Strong Case (With 1 Catch)
- 3 Robotics ETFs, 3 Different Ways to Bet on Humanoid Robots
- Can Microsoft Turn a Leaner Workforce and Record AI Spending Into Bigger Profits?
Receive News & Ratings for Gates Industrial Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Gates Industrial and related companies with MarketBeat.com's FREE daily email newsletter.
