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Shares of Garrett Motion (NASDAQ: GTX) popped 12.9% on Thursday after the automotive technology company announced solid fourth-quarter 2023 results and encouraging forward guidance.

Garrett Motion ends 2023 on a high note.

Garrett Motion's fourth-quarter net sales grew 5% year over year (3% at constant currency) to $945 million, translating to earnings based on generally accepted accounting principles (GAAP) of $52 million, or $0.22 per share. Both the top and bottom lines were roughly in line with analysts' consensus expectations but arrived above the midpoints of management's previously provided guidance ranges.

Garrett Motion also repurchased $213 million of common stock during the quarter -- a significant sum considering its entire market cap stands at around $2.3 billion as of this writing -- and implemented $200 million of early debt repayments. Trending toward its bottom line, Garrett Motion also achieved a new quarterly record for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) at $145 million.

What's next for Garrett Motion stock?

Garrett Motion issued guidance for full-year 2024 revenue of $3.80 billion to $3.95 billion. That's roughly flat from 2023 at the midpoint of the range, but above Wall Street's consensus estimates calling for revenue to decline more than 2% in the coming year. On the bottom line, that should translate to full-year GAAP net income of $230 million to $275 million, and adjusted EBITDA of $590 million to $650 million.

In the end, this wasn't exactly a jaw-dropping report from Garrett Motion. But with shares down around 12% year to date leading into this release, it's no surprise to see the stock rebounding in response today.

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Steve Symington has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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