Shares of power transmission and fluid power solutions provider Gates Corporation (NYSE:GTES)
fell 5.3% in the afternoon session after the company reported mixed third-quarter results where an earnings beat and raised guidance were overshadowed by a miss on organic revenue growth. The power transmission and fluid power solutions provider posted revenue of $855.7 million, which was in line with analyst expectations. However, the company’s organic revenue grew by only 1.7%, falling short of the 2.7% consensus estimate. In contrast to the weaker sales metric, adjusted earnings per share of $0.39 surpassed estimates, and the company raised its full-year adjusted EPS guidance. Despite the positive earnings figures, investors appeared to focus on the miss in organic growth—a key indicator of core business performance—sparking concern about the company's underlying sales momentum.
Power transmission and fluid power solutions provider Gates Corporation (NYSE:GTES) met Wall Streets revenue expectations in Q3 CY2025, with sales up 3% year on year to $855.7 million. Its non-GAAP profit of $0.39 per share was 5.4% above analysts’ consensus estimates.
Power transmission and fluid power solutions provider Gates Corporation (NYSE:GTES)
will be reporting earnings this Wednesday morning. Here’s what you need to know.
A company that generates cash isn’t automatically a winner.
Some businesses stockpile cash but fail to reinvest wisely, limiting their ability to expand.
Not all profitable companies are built to last - some rely on outdated models or unsustainable advantages.
Just because a business is in the green today doesn’t mean it will thrive tomorrow.
Even if they go mostly unnoticed, industrial businesses are the backbone of our country. They are also bound to benefit from a friendlier regulatory environment with the Trump administration,
and this excitement has led to a six-month gain of 20.3% for the sector - higher than the S&P 500’s 11.3% return.
Shares of power transmission and fluid power solutions provider Gates Corporation (NYSE:GTES)
fell 2.2% in the afternoon session after the market fell amid renewed uncertainty surrounding trade tariffs. The sell-off was broad, with the Dow Jones Industrial Average, S&P 500, and Nasdaq all posting significant declines as September trading began. The negative sentiment was sparked by a U.S. court decision that created fresh uncertainty about trade policy. This news particularly impacts industrial companies like Gates, which are sensitive to trade dynamics. According to the S&P Global US Manufacturing PMI report, tariffs have already been weighing on the sector by reducing foreign demand and raising input costs for manufacturers.
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how engineered components and systems stocks fared in Q2, starting with Gates Industrial Corporation (NYSE:GTES).
Shares of power transmission and fluid power solutions provider Gates Corporation (NYSE:GTES)
jumped 3.1% in the pre-market session after J.P. Morgan initiated coverage on the stock with an 'Overweight' rating and a $35 price target.
Each stock in this article is trading near its 52-week high.
These elevated prices usually indicate some degree of investor confidence, business improvements, or favorable market conditions.
A number of stocks fell in the afternoon session after an unexpectedly sharp rise in wholesale inflation fueled concerns about rising costs and their impact on corporate profits. The primary catalyst was the July 2025 Producer Price Index (PPI), a measure of inflation at the wholesale level, which jumped 0.9% against forecasts of a 0.2% rise. This represents the most significant monthly increase in over three years, pointing to mounting cost pressures for manufacturers, with tariffs cited as a key factor. This data complicates the Federal Reserve's upcoming interest rate decisions, as persistent inflation may prevent rate cuts, creating a headwind for cyclical sectors like Industrials.
Power transmission and fluid power solutions provider Gates Corporation (NYSE:GTES) reported Q2 CY2025 results topping the market’s revenue expectations, but sales were flat year on year at $883.7 million. Its non-GAAP profit of $0.39 per share was 3% above analysts’ consensus estimates.
The $10-50 price range often includes mid-sized businesses with proven track records and plenty of growth runway ahead.
They also usually carry less risk than penny stocks, though they’re not immune to volatility as many lack the scale advantages of their larger peers.
Power transmission and fluid power solutions provider Gates Corporation (NYSE:GTES) beat Wall Street’s revenue expectations in Q2 CY2025, but sales were flat year on year at $883.7 million. Its non-GAAP profit of $0.39 per share was 3% above analysts’ consensus estimates.
Power transmission and fluid power solutions provider Gates Corporation (NYSE:GTES)
will be announcing earnings results this Wednesday before the bell. Here’s what to look for.
