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Garrett Motion Soars on Q3 Beat, Higher Guidance and Dividend Hike

Shares closed up 19.34% at $14.93 after the report.

Overview

  • Third-quarter net income rose 48% to $77 million as net sales increased 9.2% to $902 million.
  • Earnings growth was driven by a $20 million gain in gross profit, $8 million lower interest expense, and a $2 million uptick in non-operating income.
  • Management raised full-year net income guidance to $265 million–$295 million from $233 million–$278 million.
  • The company lifted the lower end of its net sales outlook to $3.5 billion–$3.6 billion from $3.4 billion–$3.6 billion.
  • The quarterly dividend will rise by $0.02 to $0.08 per share with a Dec. 1 record date and Dec. 15 payment, and shares hit an intraday record of $15.75.