Timken (TKR) Earnings & Revenues Trail Estimates In Q3, Up Y/Y
Zacks Investment Research | Nov 03, 2019 09:15PM ET
The Timken Company (NYSE:TKR) reported third-quarter 2019 adjusted earnings per share of $1.14. The figure improved 7.5% from the prior-year quarter’s $1.11 per share. This upside was driven by favorable price and mix, benefit of acquisitions and lower material and logistics costs, partly offset by the impact of lower volume and related manufacturing utilization as well as higher interest expenses. Earnings, however, missed the Zacks Consensus Estimate of $1.18.
On a reported basis, Timken delivered earnings per share of 84 cents in the September-end quarter compared with the prior-year quarter’s 91 cents.
Total revenues in the quarter came in at $914 million, up 3.7% from the year-ago quarter, backed by acquisition benefits, partly offset by lower organic revenue in Mobile Industries, and unfavorable foreign-currency translation impact. The top-line figure, however, missed the Zacks Consensus Estimate of $946 million.
Timken registered record earnings per share, strong operating margins and excellent cash flow despite weakness in several industrial markets in the reported quarter. The company continues to grow in renewable energy and rail sectors, and takes measures to reduce costs and improve operating efficiency.
Costs and Margins
Cost of sales was up 1.3% to $636.5 million for the July-September quarter. Gross profit grew 9.5% year over year to $277.5 million. Gross margin came in at 30.3% compared with the 28.7% reported in the year-ago quarter.
Selling, general and administrative expenses flared up 4.2% to $148 million from the $142 million reported in the prior-year quarter. Operating profit increased 17.7% year over year to $128 million. Operating margin came in at 14% compared with the 12% witnessed in the comparable period last year. Adjusted EBITDA grew 11.6% year over year to $181.3 million.
The Timken Company Price, Consensus and EPS Surprise
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