Gates Industrial (GTES) Falls 12.86% on Lower Sales Growth

We recently published 10 Stocks Plunging Fast; 5 Now at All-Time Lows. Gates Industrial Corp. (NYSE:GTES) is one of the worst-performing stocks on Wednesday.

Gates Industrial extended its losing streak to a third straight day on Wednesday, shedding 12.86 percent to close at $22.50 apiece as investors sold off positions after lowering its core sales growth outlook for full-year 2025.

In an updated report, Gates Industrial Corp. (NYSE:GTES) said it now expects core sales growth to increase by 0.5 percent to 1.5 percent year-on-year, a lower upper end versus the 2.5 percent previously.

High-voltage power lines. Electricity distribution station. high voltage electric transmission tower. Distribution electric substation with power lines and transformers.

Adjusted EBITDA was also revised to a range of $770 million to $790 million, versus the $765 million to $795 million.

In the third quarter of the year, Gates Industrial Corp. (NYSE:GTES) achieved better earnings performance, with revenues growing 3 percent to $855.7 million from $830.7 million in the same period last year. Net income attributable to shareholders also jumped by 71.4 percent to $81.6 million from $47.6 million year-on-year.

“Our team helped deliver improved sales and core growth in the third quarter supported by solid growth in Automotive Replacement and strong growth in Personal Mobility,” said Gates Industrial Corp. (NYSE:GTES) CEO Ivo Jurek.

“We are executing our footprint optimization initiatives and anticipate to reduce our structural cost position over the first half of next year. We are seeing solid revenue generation opportunities with our secular growth initiatives and are optimistic about our business prospects in the mid-term,” he noted.

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Disclosure: None. This article is originally published at Insider Monkey.