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Garrett Gears Up to Report Q4 Earnings: What's in the Cards?
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Key Takeaways
GTX is set to report Q4 2025 results on Feb. 19, with EPS seen down 25.5% year over year.
Garrett Motion raised 2025 revenue outlook to $3.55B on stronger auto recovery and data center demand.
GTX faces ongoing aftermarket softness from commercial vehicle destocking pressures.
Garrett Motion Inc. (GTX - Free Report) is slated to release fourth-quarter 2025 results on Feb. 19, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at 35 cents and $871.6 million, respectively.
For the fourth quarter, the consensus estimate for Garrett’s earnings has moved down a penny in the past 30 days. Its bottom-line estimates imply 25.5% decline from the year-ago reported numbers.
The Zacks Consensus Estimate for GTX's quarterly revenues implies year-over-year growth of 3.3%. The company's earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 28.2%. This is depicted in the graph below:
In the third quarter of 2025, GTX’s adjusted EPS of 38 cents beat the Zacks Consensus Estimate of 33 cents and increased from the year-ago quarter’s earnings of 24 cents. The company reported net sales of $902 million, which beat the Zacks Consensus Estimate by $865 million. The top line also rose 9.2% year over year.
Things to Note
Demand for subunits continues to witness strong momentum, primarily driven by the rapid global expansion of data centers. These facilities rely heavily on generator sets for backup power generation, creating a structurally supportive demand environment for Garrett’s offerings. As a result, sales from these industrial applications are projected to surpass $100 million in 2025.
Reflecting improving industry conditions, Garrett has raised the midpoint of its 2025 revenue outlook to $3.55 billion from the earlier projection of $3.5 billion. This revision is supported by expectations of a stronger automotive market recovery in the second half of the year. The company has factored in the impact of tariffs on both sales and adjusted EBIT margins, net of recovery actions, suggesting improved visibility into profitability despite external cost pressures.
Within the aftermarket product category, Garrett continues to face near-term softness in the commercial vehicle off-highway category. This weakness is largely attributable to ongoing inventory destocking by certain customers, which has temporarily weighed on demand. Although stabilization in activity levels is anticipated, the destocking cycle is expected to persist for some time, potentially delaying a meaningful recovery in this portion of the business.
While the upbeat sales outlook for full-year 2025 is likely to have boosted the company’s performance in the fourth quarter, weakness within the aftermarket product category is expected to have hurt its top line.
Earnings Whispers
Our proven model does not predict an earnings beat for Garrett for the quarter to be reported, as it does not have the right combination of the two key ingredients. A positive Earnings ESP, combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. This is not the case here.
Earnings ESP: GTX has an Earnings ESP of +7.90%. This is because the Most Accurate Estimate is pegged higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank #4 (Sell).
The Zacks Consensus Estimate is pegged at a loss of $2.49 per share.
LCID surpassed earnings estimates in one of the trailing four quarters and missed thrice, the average negative surprise being 14.73%.
AutoZone, Inc. (AZO - Free Report) has an Earnings ESP of -2.23% and a Zacks Rank #4 at present. It is scheduled to post second-quarter fiscal 2026 earnings on March 3. The Zacks Consensus Estimate for earnings is pegged at $27.59 per share.
AZO missed earnings estimates in each of the trailing four quarters, the average negative surprise being 3.54%.
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Garrett Gears Up to Report Q4 Earnings: What's in the Cards?
Key Takeaways
Garrett Motion Inc. (GTX - Free Report) is slated to release fourth-quarter 2025 results on Feb. 19, before market open. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at 35 cents and $871.6 million, respectively.
For the fourth quarter, the consensus estimate for Garrett’s earnings has moved down a penny in the past 30 days. Its bottom-line estimates imply 25.5% decline from the year-ago reported numbers.
The Zacks Consensus Estimate for GTX's quarterly revenues implies year-over-year growth of 3.3%. The company's earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 28.2%. This is depicted in the graph below:
Garrett Motion Inc. Price and EPS Surprise
Garrett Motion Inc. price-eps-surprise | Garrett Motion Inc. Quote
Highlights
In the third quarter of 2025, GTX’s adjusted EPS of 38 cents beat the Zacks Consensus Estimate of 33 cents and increased from the year-ago quarter’s earnings of 24 cents. The company reported net sales of $902 million, which beat the Zacks Consensus Estimate by $865 million. The top line also rose 9.2% year over year.
Things to Note
Demand for subunits continues to witness strong momentum, primarily driven by the rapid global expansion of data centers. These facilities rely heavily on generator sets for backup power generation, creating a structurally supportive demand environment for Garrett’s offerings. As a result, sales from these industrial applications are projected to surpass $100 million in 2025.
Reflecting improving industry conditions, Garrett has raised the midpoint of its 2025 revenue outlook to $3.55 billion from the earlier projection of $3.5 billion. This revision is supported by expectations of a stronger automotive market recovery in the second half of the year. The company has factored in the impact of tariffs on both sales and adjusted EBIT margins, net of recovery actions, suggesting improved visibility into profitability despite external cost pressures.
Within the aftermarket product category, Garrett continues to face near-term softness in the commercial vehicle off-highway category. This weakness is largely attributable to ongoing inventory destocking by certain customers, which has temporarily weighed on demand. Although stabilization in activity levels is anticipated, the destocking cycle is expected to persist for some time, potentially delaying a meaningful recovery in this portion of the business.
While the upbeat sales outlook for full-year 2025 is likely to have boosted the company’s performance in the fourth quarter, weakness within the aftermarket product category is expected to have hurt its top line.
Earnings Whispers
Our proven model does not predict an earnings beat for Garrett for the quarter to be reported, as it does not have the right combination of the two key ingredients. A positive Earnings ESP, combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), increases the odds of an earnings beat. This is not the case here.
Earnings ESP: GTX has an Earnings ESP of +7.90%. This is because the Most Accurate Estimate is pegged higher than the Zacks Consensus Estimate. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: It currently carries a Zacks Rank #4 (Sell).
Earnings Whispers for Other Auto Stocks
Lucid Group, Inc. (LCID - Free Report) has an Earnings ESP of 0.00% and a Zacks Rank #4 at present. It is scheduled to post fourth-quarter 2025 earnings on Feb. 24. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate is pegged at a loss of $2.49 per share.
LCID surpassed earnings estimates in one of the trailing four quarters and missed thrice, the average negative surprise being 14.73%.
AutoZone, Inc. (AZO - Free Report) has an Earnings ESP of -2.23% and a Zacks Rank #4 at present. It is scheduled to post second-quarter fiscal 2026 earnings on March 3. The Zacks Consensus Estimate for earnings is pegged at $27.59 per share.
AZO missed earnings estimates in each of the trailing four quarters, the average negative surprise being 3.54%.