Turbocharger technology company Garrett Motion (NYSE: GTX) will be reporting results this Wednesday before market open. Here’s what to expect.
Garrett Motion beat analysts’ revenue expectations last quarter, reporting revenues of $985 million, up 12.2% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS 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 3.5% year on year, in line with the 2.6% 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 Q2 results, giving us a hint as to what we can expect. Allegion delivered year-on-year revenue growth of 12.7%, beating analysts’ expectations by 3.1%, and Sanmina reported revenues up 69.7%, topping estimates by 1.8%. Allegion traded up 9.6% following the results.
Read our full analysis of Allegion’s results here and Sanmina’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the 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 3.3% on average over the last month. Garrett Motion is down 12.2% during the same time and is heading into earnings with an average analyst price target of $35.67 (compared to the current share price of $30.81).
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