- Timken’s fourth quarter adjusted earnings per share (EPS) exceeded expectations at $1.16, compared to the estimated $0.99.
- The company matched net sales estimates with $1.07 billion reported.
- Timken outperformed in adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda) with $178.2 million, against an estimate of $159.3 million.
- Operating income came in slightly higher at $113.0 million, compared to the forecasted $111.3 million.
- Cash flow from operations was reported at $178.5 million, missing the expected $205.8 million.
- The company recorded free cash flow at $124.9 million.
- For 2025, Timken estimates earnings per diluted share in the range of $4.30 to $4.80 and adjusted earnings per share between $5.30 and $5.80.
- Timken attributes performance success to its diverse product portfolio, innovative technology, and strong performance culture.
- Future margin improvements and increased free cash flow are anticipated through cost-reduction efforts and better working capital management.
- The company has a consistent analyst rating with 6 buys, 6 holds, and no sells recorded.
Timken Co on Smartkarma
Independent analysts on Smartkarma, like Baptista Research, are closely following Timken Co, a significant player in the industrial sector. According to Baptista Research‘s report titled “The Timken Company: Expanding Capacity in Emerging Markets For A Competitive Edge! – Major Drivers,” Timken Co‘s third-quarter earnings in 2024 revealed a mixed performance influenced by macroeconomic factors. Despite a 1.4% revenue decline to $1.13 billion and a decrease in adjusted earnings per share to $1.23, the company faces challenges like softer industrial markets and higher logistics costs.
Another insightful report by Baptista Research, “The Timken Company: Initiation Of Coverage – Expanding Industrial Motion Revenue and Market Presence Catalyzing Growth! – Major Drivers,” highlights Timken Co‘s prowess in the industrial sector. Although a 7% revenue drop was reported in the second quarter of 2024 due to decreased demand in the renewable energy sector, Timken Co experienced organic growth in areas such as rail, aerospace, and industrial distribution. This positive growth outlook amid challenges showcases the company’s resilience and market presence.
A look at Timken Co Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on Smartkarma Smart Scores, Timken Co has a balanced outlook across multiple factors. With consistent scores of 3 across Value, Dividend, Growth, Resilience, and Momentum, the company demonstrates stability and moderate performance in key areas. These scores suggest that Timken Co is positioned with a steady value proposition, a reliable dividend payment track record, potential for growth, resilience in challenging environments, and a stable momentum in its operations.
The Timken Company, known for manufacturing and distributing various types of bearings and power transmission components, appears to have a solid foundation for long-term success. The consistent scores across different categories indicate a well-rounded approach to its operations, which could bode well for its future prospects and overall performance in the market.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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