Timken Crushes Earnings Estimates

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Timken (NYS: TKR) reported earnings on Jan. 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Timken beat expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.


Margins contracted across the board.

Revenue details
Timken reported revenue of $1.08 billion. The seven analysts polled by S&P Capital IQ expected a top line of $1.06 billion on the same basis. GAAP reported sales were 15% lower than the prior-year quarter's $1.26 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.80. The 10 earnings estimates compiled by S&P Capital IQ averaged $0.62 per share. GAAP EPS of $0.78 for Q4 were 30% lower than the prior-year quarter's $1.11 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 25.8%, 210 basis points worse than the prior-year quarter. Operating margin was 10.6%, 410 basis points worse than the prior-year quarter. Net margin was 7.0%, 160 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $1.19 billion. On the bottom line, the average EPS estimate is $0.83.

Next year's average estimate for revenue is $4.97 billion. The average EPS estimate is $4.30.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 215 members out of 228 rating the stock outperform, and 13 members rating it underperform. Among 77 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 74 give Timken a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Timken is outperform, with an average price target of $52.00.

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The article Timken Crushes Earnings Estimates originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere

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