Industrial component provider Timken (NYSE: TKR) will be announcing earnings results this Wednesday before market open. Here’s what investors should know.
Timken beat analysts’ revenue expectations by 1.1% last quarter, reporting revenues of $1.14 billion, down 4.2% year on year. It was a slower quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and full-year EPS guidance missing analysts’ expectations.
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 3% year on year to $1.15 billion, improving from the 7.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.36 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 3 downward revisions over the last 30 days (we track 8 analysts). Timken has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Timken’s peers in the industrial machinery segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Worthington posted flat year-on-year revenue, beating analysts’ expectations by 5.6%, and GE Aerospace reported revenues up 21.2%, topping estimates by 15.6%. Worthington traded up 1.8% following the results while GE Aerospace was down 1.1%.
Read our full analysis of Worthington’s results here and GE Aerospace’s results here.
There has been positive sentiment among investors in the industrial machinery segment, with share prices up 6.5% on average over the last month. Timken is up 12.6% during the same time and is heading into earnings with an average analyst price target of $82.90 (compared to the current share price of $81.69).
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