Garrett Motion's Q3 Earnings Surpass Estimates, Touts 'Ramp-Up Of New Products'

Zinger Key Points
  • As of Sept. 30, Garrett had $732 million in available liquidity, including $162 million in cash and cash equivalents.
  • Gross profit totaled $176 million in Q3 as compared to $178 million in the year-ago period.

Garrett Motion Inc. GTX reported Q3 FY23 sales of $960 million, up 2% on a reported basis, down 1% at constant currency, missing the Street expectation of $995 million.

Quarterly EPS of 23 cents beat the consensus of $0.22.

The company benefitted from foreign currency translational impacts and ramp-up of new products in small gasoline engine applications. 

Gross profit totaled $176 million in Q3 as compared to $178 million in the year-ago period.

The quarterly gross margin was 18.3% compared to 18.8% in the third quarter of 2022. 

The decrease was primarily driven by $23 million of unfavorable product mix, $5 million of pricing net of inflation recoveries from customer pass-through agreements, and $2 million in R&D costs.

Adjusted EBITDA increased to $152 million in the third quarter of 2023 as compared to $146 million in the third quarter of 2022. 

The increase was mainly due to higher volume, improved productivity, as well as favorable foreign exchange impacts.

As of Sept. 30, Garrett had $732 million in available liquidity, including $162 million in cash and cash equivalents.

Full Year 2023 Outlook Lowered: The company expects 2023 sales in the range of $3.83 billion-$3.90 billion versus the estimate of $4 billion (prior outlook: $3.84 billion to $4.03 billion).

Garrett Motion expects adjusted EBITDA (Non-GAAP) in the range of $615 million-$645 million from $620 million-$670 million.

Price Action: GTX shares are trading 5.70% higher at $7.60 on the last check Tuesday.

Market News and Data brought to you by Benzinga APIs
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsEquitiesNewsGuidanceSmall CapMarketsGeneralBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...