What Does Wall Street See for Timken's Q2?

Timken (NYSE: TKR) is expected to report Q2 earnings on July 26. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Timken's revenues will increase 8.9% and EPS will grow 16.5%.

The average estimate for revenue is $1.45 billion. On the bottom line, the average EPS estimate is $1.48.

Revenue details
Last quarter, Timken reported revenue of $1.42 billion. GAAP reported sales were 13% higher than the prior-year quarter's $1.25 billion.

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

EPS details
Last quarter, EPS came in at $1.58. GAAP EPS of $1.58 for Q1 were 40% higher than the prior-year quarter's $1.13 per share.

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

Recent performance
For the preceding quarter, gross margin was 29.0%, 240 basis points better than the prior-year quarter. Operating margin was 17.4%, 280 basis points better than the prior-year quarter. Net margin was 11.0%, 200 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $5.63 billion. The average EPS estimate is $5.72.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 199 members out of 213 rating the stock outperform, and 14 members rating it underperform. Among 58 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 57 give Timken a green thumbs-up, and one 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 $62.40.

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