GTX - Garrett Motion stock jumps on seeing stability in Q4

• Garrett Motion ( NASDAQ: GTX ) stock jumps despite mixed Q3 results and narrowed FY2022 outlook.
• The top-line saw around 13% growth in the quarter, driven by successful recoveries on inflation pass through and higher volumes which were impacted last year by the global semiconductor shortage.
• CEO says, "While there are still uncertainties on a macro level, we now expect stable fourth quarter demand in-line with third quarter's increased volumes. We remain confident in the strength of our core business even as we anticipate the need to flex our highly variable cost structure to address the risk of potential recession."
• For FY2022, the company sees net sales between $3.57B to $3.67B vs. prior view of $3.5B to $3.7B and consensus of $3.62B; net income between $325M to $345M vs. prior outlook of $290M to $335M; Adjusted EBITDA between $545M to $575M vs. previous guidance of $530M to $590M; net cash provided by operating activities between $380M to $440M vs. prior view of $405M to $505M; Adjusted free cash flow between $310M to $370M vs. previous view of $330M to $430M.
• The company expects Q4 free cash flow to be $160M, equating to $340M for the year at the midpoint of updated full year 2022 outlook.
• Free cash flow continues to improve as volumes increased in Q3 and stabilized through Q4.

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