Timken Earnings: Here’s Why Investors Like These Results

Timken Co. (NYSE:TKR) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1.97%.

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Timken Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 49.37% to $0.80 in the quarter versus EPS of $1.58 in the year-earlier quarter.

Revenue: Decreased 23.36% to $1.09 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Timken Co. reported adjusted EPS income of $0.80 per share. By that measure, the company beat the mean analyst estimate of $0.79. It missed the average revenue estimate of $1.17 billion.

Quoting Management: “First quarter results were in line with our expectations, reflecting difficult comparisons from record first quarter 2012 results,” said James W. Griffith, Timken president and chief executive officer. “Our integrated business model, along with our continued focus on driving efficiencies across our business, enabled us to sustain double-digit operating margins while the company experienced low levels of capacity utilization.”

Key Stats (on next page)…

Revenue increased 0.81% from $1.08 billion in the previous quarter. EPS were the same at $0.80 as the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.04 to a profit $0.99. For the current year, the average estimate has moved down from a profit of $4.26 to a profit of $4.07 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)