Turbocharger technology company Garrett Motion (NYSE: GTX) will be reporting earnings this Thursday before market open. Here’s what to look for.
Garrett Motion beat analysts’ revenue expectations last quarter, reporting revenues of $976 million, up 6.9% year on year. It was a very strong quarter for the company, with full-year EBITDA guidance beating analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.
Is Garrett Motion 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 Garrett Motion’s revenue to grow 3.1% year on year, slowing from the 9.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Garrett Motion has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Garrett Motion’s peers in the electrical systems segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Allegion delivered year-on-year revenue growth of 9.6%, beating analysts’ expectations by 3.3%, and Hubbell reported revenues up 24.6%, topping estimates by 0.7%. Allegion traded up 12.6% following the results.
Read our full analysis of Allegion’s results here and Hubbell’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. While some of the electrical systems stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.7% on average over the last month. Garrett Motion is down 14.6% during the same time and is heading into earnings with an average analyst price target of $34.83 (compared to the current share price of $22.09).
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