Industrial component provider Timken (NYSE: TKR) will be reporting results this Wednesday before market open. Here’s what investors should know.
Timken beat analysts’ revenue expectations by 2.3% last quarter, reporting revenues of $1.17 billion, flat year on year. It was a satisfactory quarter for the company, with a solid beat of analysts’ revenue estimates but full-year EPS guidance missing analysts’ expectations.
Is Timken a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Timken’s revenue to be flat year on year at $1.12 billion, in line with the 1.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.24 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 only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 0.9% on average.
Looking at Timken’s peers in the industrial machinery segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Worthington delivered year-on-year revenue growth of 18%, beating analysts’ expectations by 1.4%, and GE Aerospace reported revenues up 26.4%, topping estimates by 3.7%. Worthington traded down 11.6% following the results while GE Aerospace was also down 1.6%.
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 3.8% on average over the last month. Timken is up 2.8% during the same time and is heading into earnings with an average analyst price target of $84.15 (compared to the current share price of $77.30).
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