Timken Beats Up on Analysts Yet Again
Timken (NYS: TKR) reported earnings on April 24. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), Timken beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share increased significantly.
Margins expanded across the board.
Timken booked revenue of $1.42 billion. The seven analysts polled by S&P Capital IQ expected sales of $1.37 billion on the same basis. 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 came in at $1.58. The five earnings estimates compiled by S&P Capital IQ averaged $1.26 per share. 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.
For the 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.
Next quarter's average estimate for revenue is $1.45 billion. On the bottom line, the average EPS estimate is $1.40.
Next year's average estimate for revenue is $5.60 billion. The average EPS estimate is $5.20.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 193 members out of 207 rating the stock outperform, and 14 members rating it underperform. Among 69 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 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 buy, with an average price target of $62.40.
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At the time this article 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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