Industrial component provider Timken (NYSE: TKR) will be announcing earnings results this Tuesday morning. Here’s what investors should know.
Timken beat analysts’ revenue expectations last quarter, reporting revenues of $1.23 billion, up 8% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and full-year EPS guidance beating analysts’ expectations.
Is Timken a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Timken’s revenue to grow 5.2% year on year, improving from its flat revenue in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Timken has a history of exceeding Wall Street’s expectations.
Looking at Timken’s peers in the engineered components and systems segment, some have already reported their Q2 results, giving us a hint as to what we can expect. RBC Bearings delivered year-on-year revenue growth of 19.2%, beating analysts’ expectations by 2.1%, and Gates Industrial Corporation reported revenues up 6.6%, topping estimates by 1.7%.
Read our full analysis of RBC Bearings’s results here and Gates Industrial Corporation’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the engineered components and systems stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5% on average over the last month. Timken is down 3% during the same time and is heading into earnings with an average analyst price target of $144.91 (compared to the current share price of $140.23).
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