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Industrial component provider Timken (NYSE:TKR) will be reporting results tomorrow before market hours. Here’s what you need to know.
Timken met analysts’ revenue expectations last quarter, reporting revenues of $1.18 billion, down 7.1% year on year. It was an ok quarter for the company, with a decent beat of analysts’ EBITDA estimates.
Is Timken a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Timken’s revenue to decline 2.2% year on year to $1.12 billion, a deceleration from its flat revenue in the same quarter last year. Adjusted earnings are expected to come in at $1.38 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 3 downward revisions over the last 30 days (we track 9 analysts). Timken has missed Wall Street’s revenue estimates four times over the last two years.
Looking at Timken’s peers in the engineered components and systems segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Gates Industrial Corporation’s revenues decreased 4.8% year on year, meeting analysts’ expectations, and Applied Industrial reported flat revenue, topping estimates by 1.5%. Gates Industrial Corporation traded up 6% following the results while Applied Industrial was also up 3.4%.
Read our full analysis of Gates Industrial Corporation’s results here and Applied Industrial’s results here.
Investors in the engineered components and systems segment have had steady hands going into earnings, with share prices flat over the last month. Timken’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $92.27 (compared to the current share price of $83.15).
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