Garrett Motion Shifts Into Reverse: Sales, Earnings Skid On Demand Weakness
Portfolio Pulse from Lekha Gupta
Garrett Motion Inc (NASDAQ:GTX) reported disappointing Q2 FY24 results, with sales and earnings missing consensus estimates due to demand weakness in gasoline, diesel, and commercial vehicles. The company lowered its FY24 outlook for net sales and adjusted EBITDA. GTX shares fell 12.8% following the report.
July 25, 2024 | 4:58 pm
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Garrett Motion Inc (NASDAQ:GTX) reported Q2 FY24 sales of $890 million, missing the consensus of $975.5 million. Revenues declined 12% Y/Y, and adjusted EBITDA fell to $150 million from $170 million. The company lowered its FY24 net sales and adjusted EBITDA outlook. GTX shares fell 12.8%.
The significant miss on sales and earnings, along with the lowered FY24 outlook, indicates a challenging environment for Garrett Motion. This has led to a sharp decline in the stock price.
CONFIDENCE 100
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Investors can gain exposure to Garrett Motion Inc (NASDAQ:GTX) via SPDR S&P Kensho Smart Mobility ETF (NYSE:HAIL). The ETF may experience some impact due to the significant drop in GTX shares.
While HAIL provides exposure to GTX, the impact on the ETF will be less pronounced compared to the direct impact on GTX shares. However, the significant drop in GTX shares could still affect HAIL's performance.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 30