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Timken (TKR) Supplies Bearings for Ford Motor F-150 Lightning

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The Timken Company (TKR - Free Report) announced that Ford Motor Company’s (F - Free Report) electric light-duty pickup truck, F-150 Lightning, is using Timken’s packaged wheel bearings. Notably, the company started supplying wheel bearings for the F-150 Lightning in April 2022.

Timken has spent a long time on advanced designs for electric vehicles (“EVs”). Its technology has advanced to create lighter, smaller and more fuel-efficient solutions capable of meeting the unique performance demands of EVs, such as higher torque and load requirements.

Manufacturers such as Ford can switch to EV designs without having to rethink their entire supply chain with the help of Timken's customized bearing designs. Timken worked closely with the Ford team to deal with design challenges and support Ford’s high standards for performance and safety. Timken assisted Ford’s timeline and provided information on innovating product and process technologies to address the emerging EV trend.

Timken and Ford have a long-standing relationship. It dates back to 1908 when the companies collaborated for the production of the Model T. In addition to other variations of F-150, Ford employs Timken bearings in its Expedition and Lincoln Navigator SUVs.

Timken has been benefiting from growth across most end-market sectors, led by industrial distribution and off-highway, and the impact of higher pricing.

In the third quarter of 2022, the company reported adjusted earnings per share of $1.52, beating the Zacks Consensus Estimate of $1.33. The bottom line increased 29% year over year. Total revenues in the quarter were $1,136 million, up 9.6% from the year-ago quarter. The top line surpassed the Zacks Consensus Estimate of $1,091 million.

To reflect the third-quarter results, Timken raised the adjusted EPS guidance for 2022 to $5.80-$5.95 from the previously stated $5.50-$5.80. For 2022, it expects total revenue growth of 9% from the 2021 reported level.

Price Performance

In the past year, shares of Timken have gained 3.6% against the industry’s fall of 8.2%.


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Zacks Rank & Stocks to Consider

Timken currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the Industrial Products sector are KnowBe4, Inc. and Deere & Company (DE - Free Report) . KNBE flaunts a Zacks Rank #1 (Strong Buy) at present, while DE has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

KnowBe4’s earnings surprise in the last four quarters was 216.7%, on average. The Zacks Consensus Estimate for the company’s 2022 earnings is pegged at 25 cents, indicating a year-over-year increase of 127.3%. The consensus estimate for 2022 earnings has moved up 25% in the past 60 days. KNBE’s shares have gained 9.5% in a year.

The Zacks Consensus Estimate for Deere & Company’s fiscal 2023 earnings per share is pegged at $27.85, suggesting an increase of 19.6% from that reported in the last year. The consensus estimate for fiscal 2023 earnings moved 5.2% upward in the last 60 days. DE has a trailing four-quarter average earnings surprise of 7.1%. Its shares gained 15.2% in the last year.

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