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Garrett Motion Inc. (NASDAQ:GTX) shares soared to a 52-week high this trading session, reaching a peak of $10.38 USD. The automotive technology company, currently valued at $2.1 billion, appears slightly undervalued according to InvestingPro Fair Value metrics. The surge in stock price marks a significant milestone for the company, reflecting a robust period of trading that has caught the attention of investors. The stock has delivered impressive returns, with a year-to-date gain of 10.12% and trades at an attractive P/E ratio of 9.6x. Over the past year, Garrett Motion has experienced commendable growth, with the stock witnessing a 1-year change of 4.88%. InvestingPro has identified several bullish indicators for GTX, including management’s aggressive share buybacks and strong profitability metrics - discover 3 more exclusive ProTips with a subscription. This uptick is a testament to the company’s resilience and potential for future growth, as investors continue to show confidence in Garrett Motion’s market position and strategic direction. The company maintains healthy profitability with a gross margin of 20.3% and strong return on assets of 11.7%.
In other recent news, Garrett Motion Inc. reported its fourth-quarter 2024 earnings, showcasing a notable performance with earnings per share (EPS) of $0.47, significantly exceeding the forecasted $0.31. However, the company’s revenue of $844 million fell short of the anticipated $905.5 million. Despite the earnings beat, the revenue miss led to some investor concerns. The company achieved an adjusted EBITDA of $153 million, representing an 18.1% margin, an increase from the previous year. Garrett Motion is focusing on expanding its turbo technologies and electrification solutions, which contributed to its solid performance. The company also announced plans for a $250 million share repurchase program and $50 million in quarterly dividends in 2025. Looking ahead, Garrett Motion projects net sales of $3.4 billion and net income of $232 million for 2025. The company continues to invest in zero-emission technologies, with R&D spending expected to rise to 4.6% of sales.
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