A Preview Of Timken's Earnings

Timken TKR is set to give its latest quarterly earnings report on Tuesday, 2024-11-05. Here's what investors need to know before the announcement.

Analysts estimate that Timken will report an earnings per share (EPS) of $1.38.

The announcement from Timken is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Earnings History Snapshot

The company's EPS beat by $0.02 in the last quarter, leading to a 2.82% drop in the share price on the following day.

Here's a look at Timken's past performance and the resulting price change:

Stock Performance

Shares of Timken were trading at $83.15 as of November 01. Over the last 52-week period, shares are up 19.29%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Opinions on Timken

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Timken.

Analysts have given Timken a total of 3 ratings, with the consensus rating being Neutral. The average one-year price target is $93.33, indicating a potential 12.24% upside.

Peer Ratings Overview

This comparison focuses on the analyst ratings and average 1-year price targets of Chart Industries, Watts Water Technologies and Middleby, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• The consensus among analysts is an Buy trajectory for Chart Industries, with an average 1-year price target of $165.09, indicating a potential 98.54% upside.
• Watts Water Technologies received a Neutral consensus from analysts, with an average 1-year price target of $208.67, implying a potential 150.96% upside.
• As per analysts' assessments, Middleby is favoring an Buy trajectory, with an average 1-year price target of $161.0, suggesting a potential 93.63% upside.

Comprehensive Peer Analysis Summary

In the peer analysis summary, key metrics for Chart Industries, Watts Water Technologies and Middleby are highlighted, providing an understanding of their respective standings within the industry and offering insights into their market positions and comparative performance.

Key Takeaway:

Timken ranks at the bottom for Revenue Growth among its peers. It is in the middle for Gross Profit. Timken is at the top for Return on Equity.

Discovering Timken: A Closer Look

The Timken Company is a manufacturer of bearings, gear belts, industrial motion products and chain-related products. The company sells its portfolio of bearings, including tapered, spherical and cylindrical roller bearings, and thrust and ball bearings, through a network of authorized dealers to end users or directly to original equipment manufacturers. End-market sectors include general industrial, automotive, rail, energy, heavy truck, defense, agriculture, metals, mining, civil aerospace, construction, pulp and paper, and cement industries. Its segments are Engineered Bearings and Industrial Motion. Timken generates majority of its revenue in the United States of America.

Timken: Delving into Financials

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

Decline in Revenue: Over the 3 months period, Timken faced challenges, resulting in a decline of approximately -7.07% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Net Margin: Timken's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 8.14%, the company may face hurdles in effective cost management.

Return on Equity (ROE): Timken's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 3.56%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of 1.47%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Timken's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.82, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

To track all earnings releases for Timken visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.