Garrett Motion Clocks 4% Jump In Q4 Sales, Annual Sales Guidance Shy Of Consensus

Garrett Motion Inc GTX reported Q4 FY22 sales of $898 million, up 4% on a GAAP basis, up 15% at constant currency, missing the consensus of $949 million.
"Fourth quarter net sales increased 4% on a reported basis and 15% at constant currency, as we continue to flex our variable cost structure to manage macro volatility, successfully offsetting both foreign exchange and inflationary pressures," said Garrett, President and CEO, Olivier Rabiller.
Successful recoveries drove the increase in net sales on inflation pass-through and improved product mix primarily due to commercial vehicles and aftermarket.
EPS was $0.23, compared to $0.29 a year ago, missing the consensus of $0.26.
"I am also pleased to report that Garrett continues to gain momentum and leverage our increasing investment in electrification technology," Rabiller added.
Adjusted EBITDA increased to $140 million in the fourth quarter of 2022 as compared to $129 million in the fourth quarter of 2021.
Outlook: Garrett Motion expects FY23 net sales of $3.55-$3.85 billion versus the consensus of $3.94 billion.
It expects adjusted EBITDA of $555-$615 million.
Garrett's full-year 2023 outlook expects 2023 light vehicle industry production to be in line with 2022.
Price Action: GTX shares are trading higher by 1.90% at $8.60 in premarket on the last check Tuesday.