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Timken (TKR) Secures Contract for Al Dhafra Facility, Abu Dhabi
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The Timken Company (TKR - Free Report) recently won a contract to provide high-precision drives for the Al Dhafra PV2 site in Abu Dhabi, the world's largest single-site solar power plant. The company’s solar-tracking technology will be used to exactly position the site’s solar panels in line with the sun.
The Al Dhafra facility is likely to be online in the current year. Following the construction of the facility, its 4 million solar panels — controlled by 83,000 Cone Drive high-precision drives — are estimated to provide power supply to as many as 160,000 homes across the United Arab Emirates (UAE). This will lower carbon dioxide emissions by approximately 2.4 million metric tons per year.
Timken has been active in the wind market for more than 10 years. The company stepped in solar energy space with the acquisition of Cone Drive in 2018. In the past four years, Cone Drive solar revenues increased by more than 20% on a compound annual growth rate (CAGR) basis. Cone Drive's high-precision drives offer tracking and positioning abilities for photovoltaic (PV) and concentrated solar power (CSP) applications. Since the buyout, Timken and Cone Drive have worked in more than one-third of the world's utility-scale solar tracking system projects. As the world continues to transition to renewable energy sources, Timken expects its solar energy revenues to grow at a double-digit pace over the next three to five years.
Timken is focused on investing in research and development for the solar energy market. The company has built strong manufacturing, engineering and testing capabilities in the United States and China. The company combined several sites into a new, larger campus in Jiangyin, China. This will not only help to increase production volume but also widen the product range offerings and improve efficiency in precision drives used in the solar energy market.
Timken is focused on building its renewable energy portfolio through innovation and acquisitions in the past three years. Renewable energy is currently the company’s largest individual end-market sector generating 12% of sales compared with only 5% in 2018. The company delivered another year of double-digit revenue growth in renewable energy in 2021. The global demand for renewable energy is expected to witness a CAGR of around 8% over the next 10 years. The share of electricity generation from renewable is expected to more than double by 2030. The company is investing in this sector to capitalize on this trend and make it a bigger part of its portfolio in the future. In line with this, Timken announced that it would make capital investments of more than $75 million through early 2022 to expand its renewable energy business.
Timken recently reported fourth-quarter 2021 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The bottom line declined year over year despite an increase in revenues. It expects the current year’s total revenues to be up around 10% compared with 2021 levels. Adjusted earnings per share for the year is expected between $5.00 and $5.40. Robust industrial demand, benefits from price realization and growth initiatives will likely deliver top- and bottom-line growth in 2022. However, supply chain challenges and inflationary cost pressure will continue to dampen the company’s results.
Price Performance
In the past year, shares of Timken have lost 4.9% compared with the industry’s decline of 10.3%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Timken currently has a Zacks Rank #5 (Strong Sell).
Dover’s fourth-quarter 2021 adjusted EPS increased 15% year over year to $1.78, beating the Zacks Consensus Estimate of $1.66. DOV has a trailing four-quarter earnings surprise of 12.3%, on average.
Dover has an estimated earnings growth rate of around 12.7% for 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 4%. DOV’s shares have rallied around 44.5% in a year.
Silgan Holdings’ fourth-quarter 2021 adjusted EPS increased 32% year over year to a record 79 cents, beating the Zacks Consensus Estimate of 73 cents. SLGN has a trailing four-quarter earnings surprise of 3.8%, on average.
Silgan has a projected earnings growth rate of 13.5% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 3% in the past 60 days. In a year, SLGN has appreciated 19.7%.
Applied Industrial Technologies reported adjusted EPS of $1.46 in second-quarter fiscal 2022 (ended Dec 31, 2020), up 49% year on year and beating the Zacks Consensus Estimate of $1.09. AIT has a trailing four-quarter earnings surprise of 27.9%, on average.
Applied Industrial Technologies has an expected earnings growth rate of 24.8% for fiscal 2022. The Zacks Consensus Estimate for fiscal year earnings has moved up 9.4% in the past 60 days. AIT’s shares have appreciated 36% in a year.
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Timken (TKR) Secures Contract for Al Dhafra Facility, Abu Dhabi
The Timken Company (TKR - Free Report) recently won a contract to provide high-precision drives for the Al Dhafra PV2 site in Abu Dhabi, the world's largest single-site solar power plant. The company’s solar-tracking technology will be used to exactly position the site’s solar panels in line with the sun.
The Al Dhafra facility is likely to be online in the current year. Following the construction of the facility, its 4 million solar panels — controlled by 83,000 Cone Drive high-precision drives — are estimated to provide power supply to as many as 160,000 homes across the United Arab Emirates (UAE). This will lower carbon dioxide emissions by approximately 2.4 million metric tons per year.
Timken has been active in the wind market for more than 10 years. The company stepped in solar energy space with the acquisition of Cone Drive in 2018. In the past four years, Cone Drive solar revenues increased by more than 20% on a compound annual growth rate (CAGR) basis. Cone Drive's high-precision drives offer tracking and positioning abilities for photovoltaic (PV) and concentrated solar power (CSP) applications. Since the buyout, Timken and Cone Drive have worked in more than one-third of the world's utility-scale solar tracking system projects. As the world continues to transition to renewable energy sources, Timken expects its solar energy revenues to grow at a double-digit pace over the next three to five years.
Timken is focused on investing in research and development for the solar energy market. The company has built strong manufacturing, engineering and testing capabilities in the United States and China. The company combined several sites into a new, larger campus in Jiangyin, China. This will not only help to increase production volume but also widen the product range offerings and improve efficiency in precision drives used in the solar energy market.
Timken is focused on building its renewable energy portfolio through innovation and acquisitions in the past three years. Renewable energy is currently the company’s largest individual end-market sector generating 12% of sales compared with only 5% in 2018. The company delivered another year of double-digit revenue growth in renewable energy in 2021. The global demand for renewable energy is expected to witness a CAGR of around 8% over the next 10 years. The share of electricity generation from renewable is expected to more than double by 2030. The company is investing in this sector to capitalize on this trend and make it a bigger part of its portfolio in the future. In line with this, Timken announced that it would make capital investments of more than $75 million through early 2022 to expand its renewable energy business.
Timken recently reported fourth-quarter 2021 results, with earnings missing the Zacks Consensus Estimate and revenues beating the same. The bottom line declined year over year despite an increase in revenues. It expects the current year’s total revenues to be up around 10% compared with 2021 levels. Adjusted earnings per share for the year is expected between $5.00 and $5.40. Robust industrial demand, benefits from price realization and growth initiatives will likely deliver top- and bottom-line growth in 2022. However, supply chain challenges and inflationary cost pressure will continue to dampen the company’s results.
Price Performance
In the past year, shares of Timken have lost 4.9% compared with the industry’s decline of 10.3%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Timken currently has a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the Industrial Products sector include Dover Corporation (DOV - Free Report) , Silgan Holdings Inc. (SLGN - Free Report) and Applied Industrial Technologies, Inc. (AIT - Free Report) , each carrying a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dover’s fourth-quarter 2021 adjusted EPS increased 15% year over year to $1.78, beating the Zacks Consensus Estimate of $1.66. DOV has a trailing four-quarter earnings surprise of 12.3%, on average.
Dover has an estimated earnings growth rate of around 12.7% for 2022. In the past 60 days, the Zacks Consensus Estimate for current-year earnings has been revised upward by 4%. DOV’s shares have rallied around 44.5% in a year.
Silgan Holdings’ fourth-quarter 2021 adjusted EPS increased 32% year over year to a record 79 cents, beating the Zacks Consensus Estimate of 73 cents. SLGN has a trailing four-quarter earnings surprise of 3.8%, on average.
Silgan has a projected earnings growth rate of 13.5% for the current year. The Zacks Consensus Estimate for 2022 earnings has moved north by 3% in the past 60 days. In a year, SLGN has appreciated 19.7%.
Applied Industrial Technologies reported adjusted EPS of $1.46 in second-quarter fiscal 2022 (ended Dec 31, 2020), up 49% year on year and beating the Zacks Consensus Estimate of $1.09. AIT has a trailing four-quarter earnings surprise of 27.9%, on average.
Applied Industrial Technologies has an expected earnings growth rate of 24.8% for fiscal 2022. The Zacks Consensus Estimate for fiscal year earnings has moved up 9.4% in the past 60 days. AIT’s shares have appreciated 36% in a year.