Timken Beats Estimates Yet Again

Seth Jayson, The Motley Fool
Updated

Timken (NYS: TKR) reported earnings on Jan. 26. Here are the numbers you need to know.

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

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

Margins expanded across the board.

Revenue details
 Timken booked revenue of $1.26 billion. The six analysts polled by S&P Capital IQ expected net sales of $1.27 billion. Sales were 18% higher than the prior-year quarter's $1.07 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
 Non-GAAP EPS came in at $1.15. The seven earnings estimates compiled by S&P Capital IQ anticipated $1.07 per share on the same basis. GAAP EPS of $1.12 for Q4 were 22% higher than the prior-year quarter's $0.91 per share.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 27.1%, 220 basis points better than the prior-year quarter. Operating margin was 13.9%, 290 basis points better than the prior-year quarter. Net margin was 8.6%, 20 basis points better than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $1.38 billion. On the bottom line, the average EPS estimate is $1.29.

Next year's average estimate for revenue is $5.67 billion. The average EPS estimate is $5.23.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 190 members out of 204 rating the stock outperform, and 14 members rating it underperform. Among 79 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 77 give Timken a green thumbs-up, and two give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Timken is buy, with an average price target of $58.89.

At the time thisarticle was published 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. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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