The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Timken missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share contracted significantly.
Gross margins grew, operating margins shrank, net margins contracted.
Timken tallied revenue of $1.14 billion. The seven analysts polled by S&P Capital IQ predicted a top line of $1.24 billion on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $1.32 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.91. The eight earnings estimates compiled by S&P Capital IQ forecast $1.00 per share. GAAP EPS of $0.83 for Q3 were 26% lower than the prior-year quarter's $1.12 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 26.2%, 20 basis points better than the prior-year quarter. Operating margin was 12.8%, 140 basis points worse than the prior-year quarter. Net margin was 7.1%, 130 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.19 billion. On the bottom line, the average EPS estimate is $0.96.
Next year's average estimate for revenue is $5.26 billion. The average EPS estimate is $4.79.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 219 members out of 232 rating the stock outperform, and 13 members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 65 give Timken a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Timken is outperform, with an average price target of $51.40.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Timken. Learn how to maximize your investment income and get "The 3 DOW Stocks Dividend Investors Need." Click here for instant access to this free report.
- Add Timken to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.