We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
TKR Stock Slips 8% Since Posting Q3 Earnings Miss & Y/Y Revenue Dip
Read MoreHide Full Article
Shares of The Timken Company (TKR - Free Report) have lost 8% since it reported third-quarter 2024 results on Nov. 5, 2024. TKR reported adjusted earnings per share (EPS) of $1.23 for the quarter, which marked a 20.6% year-over-year decline. The bottom line also missed the Zacks Consensus Estimate of earnings of $1.37. The weaker-than-expected results were led by lower volumes and higher costs.
On a reported basis, the company delivered earnings of $1.16 per share compared with $1.23 in the prior-year quarter.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Total revenues were $1.13 billion, down 1.4% from the year-ago quarter. The top line beat the Zacks Consensus Estimate of $1.12 billion.
Timken Company (The) Price, Consensus and EPS Surprise
The cost of sales dipped 0.6% to $782 million from the prior-year quarter. The gross profit decreased 3% year over year to $344 million. The gross margin was 30.6% compared with 31.1% in the year-ago quarter.
Selling, general and administrative expenses were up 5.6% year over year to $189.7 million. Operating income fell 2% year over year to $146 million.
Adjusted EBITDA declined 12% year over year to $190 million. The adjusted EBITDA margin was 16.9%, a 200-basis-point contraction from 18.9% in the prior-year quarter.
Timken’s Segment Performances in Q3
The Engineered Bearings segment’s revenues fell 4.5% year over year to $741 million. This was due to weak end-market demand in Europe and China. Renewable energy witnessed a significant organic decline in the quarter, owing to continued weakness in China. The off-highway, auto/truck and general & heavy industrial sectors also declined, while industrial distribution, aerospace and rail shipments were higher year over year.
The Engineered Bearings segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $138 million compared with the year-ago quarter’s $157 million. The decline was due to lower volume and higher logistics and manufacturing costs, offset by favorable price/mix.
The Industrial Motion segment’s revenues rose 5.2% year over year to $386 million. The increase was aided by acquisitions, offset by lower end-market demand. Organically, the automatic lubrication systems platform posted the largest decline, while drive systems revenues showed improvement.
The segment’s adjusted EBITDA was $74 million compared with $75 million in the third quarter of 2023. The decline was due to lower volume and higher operating costs, partially offset by the benefits of acquisitions.
TKR’s Cash Flow & Balance Sheet Updates
Timken had cash and cash equivalents of $413 million at the end of the third quarter compared with $419 million at the end of 2023. Cash flow from operating activities was $123 million compared with $194 million in the prior-year quarter.
The long-term debt as of Sept. 30, 2024, was $2.19 billion, up from $1.79 billion as of Dec. 31, 2023. Net debt to adjusted EBITDA was 2.1 as of the same date, in-line with the figure as of Dec. 31, 2023.
During the quarter, Timken completed the acquisition of CGI, Inc., a manufacturer of precision drive systems for medical robotics and other automation sectors.
Timken’s 2024 Guidance
Timken expects total revenues to decline 4% from the 2023 level. The company anticipates adjusted EPS to be between $5.55 and $5.65. The midpoint of the range indicates a year-over-year decline of 21%.
TKR Stock’s Price Performance
In the past year, TKR shares have gained 8.5% compared with the industry’s 10.8% growth.
Image Source: Zacks Investment Research
Timken’s Zacks Rank
Timken currently carries a Zacks Rank #5 (Strong Sell).
KLA Corporation (KLAC - Free Report) reported first-quarter fiscal 2025 (ended Sept. 30, 2024) adjusted earnings of $7.33 per share, which beat the Zacks Consensus Estimate of $7.03. The figure jumped 27.7% year over year.
KLAC’s revenues increased 18.5% year over year to $2.84 billion, surpassing the consensus estimate of $2.76 billion.
Garmin Ltd. (GRMN - Free Report) posted third-quarter 2024 EPS of $1.99, which beat the Zacks Consensus Estimate of $1.46. The bottom line marked a 41% year-over-year improvement.
GRMN posted revenues of $1.59 billion, which beat the consensus estimate of $1.44 billion. The company reported revenues of $1.28 billion in the year-ago quarter.
Carrier Global Corporation (CARR - Free Report) reported third-quarter 2024 EPS of 77 cents per share, which missed the Zacks Consensus Estimate of 81 cents. The company had reported earnings of 89 cents per share in the year-ago quarter.
CARR recorded revenues of $5.98 billion , which missed the consensus estimate of $6.61 billion. The company had reported revenues of $5.73 billion in the year-ago quarter.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
TKR Stock Slips 8% Since Posting Q3 Earnings Miss & Y/Y Revenue Dip
Shares of The Timken Company (TKR - Free Report) have lost 8% since it reported third-quarter 2024 results on Nov. 5, 2024. TKR reported adjusted earnings per share (EPS) of $1.23 for the quarter, which marked a 20.6% year-over-year decline. The bottom line also missed the Zacks Consensus Estimate of earnings of $1.37. The weaker-than-expected results were led by lower volumes and higher costs.
On a reported basis, the company delivered earnings of $1.16 per share compared with $1.23 in the prior-year quarter.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Total revenues were $1.13 billion, down 1.4% from the year-ago quarter. The top line beat the Zacks Consensus Estimate of $1.12 billion.
Timken Company (The) Price, Consensus and EPS Surprise
Timken Company (The) price-consensus-eps-surprise-chart | Timken Company (The) Quote
Timken Reports Margin Contraction
The cost of sales dipped 0.6% to $782 million from the prior-year quarter. The gross profit decreased 3% year over year to $344 million. The gross margin was 30.6% compared with 31.1% in the year-ago quarter.
Selling, general and administrative expenses were up 5.6% year over year to $189.7 million. Operating income fell 2% year over year to $146 million.
Adjusted EBITDA declined 12% year over year to $190 million. The adjusted EBITDA margin was 16.9%, a 200-basis-point contraction from 18.9% in the prior-year quarter.
Timken’s Segment Performances in Q3
The Engineered Bearings segment’s revenues fell 4.5% year over year to $741 million. This was due to weak end-market demand in Europe and China. Renewable energy witnessed a significant organic decline in the quarter, owing to continued weakness in China. The off-highway, auto/truck and general & heavy industrial sectors also declined, while industrial distribution, aerospace and rail shipments were higher year over year.
The Engineered Bearings segment’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were $138 million compared with the year-ago quarter’s $157 million. The decline was due to lower volume and higher logistics and manufacturing costs, offset by favorable price/mix.
The Industrial Motion segment’s revenues rose 5.2% year over year to $386 million. The increase was aided by acquisitions, offset by lower end-market demand. Organically, the automatic lubrication systems platform posted the largest decline, while drive systems revenues showed improvement.
The segment’s adjusted EBITDA was $74 million compared with $75 million in the third quarter of 2023. The decline was due to lower volume and higher operating costs, partially offset by the benefits of acquisitions.
TKR’s Cash Flow & Balance Sheet Updates
Timken had cash and cash equivalents of $413 million at the end of the third quarter compared with $419 million at the end of 2023. Cash flow from operating activities was $123 million compared with $194 million in the prior-year quarter.
The long-term debt as of Sept. 30, 2024, was $2.19 billion, up from $1.79 billion as of Dec. 31, 2023. Net debt to adjusted EBITDA was 2.1 as of the same date, in-line with the figure as of Dec. 31, 2023.
During the quarter, Timken completed the acquisition of CGI, Inc., a manufacturer of precision drive systems for medical robotics and other automation sectors.
Timken’s 2024 Guidance
Timken expects total revenues to decline 4% from the 2023 level. The company anticipates adjusted EPS to be between $5.55 and $5.65. The midpoint of the range indicates a year-over-year decline of 21%.
TKR Stock’s Price Performance
In the past year, TKR shares have gained 8.5% compared with the industry’s 10.8% growth.
Image Source: Zacks Investment Research
Timken’s Zacks Rank
Timken currently carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Performances of TKR’s Peers
KLA Corporation (KLAC - Free Report) reported first-quarter fiscal 2025 (ended Sept. 30, 2024) adjusted earnings of $7.33 per share, which beat the Zacks Consensus Estimate of $7.03. The figure jumped 27.7% year over year.
KLAC’s revenues increased 18.5% year over year to $2.84 billion, surpassing the consensus estimate of $2.76 billion.
Garmin Ltd. (GRMN - Free Report) posted third-quarter 2024 EPS of $1.99, which beat the Zacks Consensus Estimate of $1.46. The bottom line marked a 41% year-over-year improvement.
GRMN posted revenues of $1.59 billion, which beat the consensus estimate of $1.44 billion. The company reported revenues of $1.28 billion in the year-ago quarter.
Carrier Global Corporation (CARR - Free Report) reported third-quarter 2024 EPS of 77 cents per share, which missed the Zacks Consensus Estimate of 81 cents. The company had reported earnings of 89 cents per share in the year-ago quarter.
CARR recorded revenues of $5.98 billion , which missed the consensus estimate of $6.61 billion. The company had reported revenues of $5.73 billion in the year-ago quarter.