Industrial component provider Timken (NYSE: TKR) will be reporting earnings tomorrow before market open. Here’s what you need to know.
Timken beat analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $1.07 billion, down 1.6% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates.
Is Timken a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Timken’s revenue to decline 5.3% year on year to $1.13 billion, in line with the 5.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.42 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Timken has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Timken’s peers in the industrial machinery segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Worthington’s revenues decreased 3.9% year on year, beating analysts’ expectations by 6.7%, and GE Aerospace reported revenues up 23%, topping estimates by 1.7%. Worthington traded up 24% following the results while GE Aerospace was also up 8.6%.
Read our full analysis of Worthington’s results here and GE Aerospace’s results here.
Investors in the industrial machinery segment have had fairly steady hands going into earnings, with share prices down 1.3% on average over the last month. Timken is down 10.1% during the same time and is heading into earnings with an average analyst price target of $77.15 (compared to the current share price of $64.60).
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