Timken Earnings: Here’s Why Shares are Down Now

Timken Co. (NYSE:TKR) delivered a profit and missed Wall Street’s expectations, AND 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 down 7.75%.

Timken Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 30.6% to $0.93 in the quarter versus EPS of $1.34 in the year-earlier quarter.

Revenue: Decreased 16.13% to $1.13 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Timken Co. reported adjusted EPS income of $0.93 per share. By that measure, the company missed the mean analyst estimate of $0.97. It missed the average revenue estimate of $1.19 billion.

Quoting Management: “We continue to perform very well, maintaining double-digit operating margins despite weak demand lingering in many global markets,” said James W. Griffith, Timken president and chief executive officer. “Although our outlook for the year now reflects a more modest market recovery in the second half, we continue to expect strong financial performance for the remainder of the year.”

Key Stats (on next page)…

Revenue increased 3.36% from $1.09 billion in the previous quarter. EPS increased 16.25% from $0.80 in 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 $1.13 to a profit $1.09. For the current year, the average estimate has moved down from a profit of $4.04 to a profit of $3.97 over the last ninety days.

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