Timken's (TKR) Q4 Earnings Miss Estimates, Revenues Beat
Zacks Investment Research | Feb 05, 2020 08:26PM ET
The Timken Company (NYSE:TKR) reported fourth-quarter 2019 adjusted earnings per share of 84 cents, which fell short of the Zacks Consensus Estimate of 95 cents. The reported figure declined 16% from $1.00 per share in the prior-year quarter. Lower volumes, and higher manufacturing and SG&A costs, partially offset by positive pricing and lower material and logistics costs, led to the overall decline in the company’s earnings.
On a reported basis, Timken delivered earnings per share of $1.48 in the fourth quarter compared with the prior-year quarter’s 77 cents.
Total revenues in the quarter came in at $896 million, down 1.5% from the year-ago quarter due to lower demand, mainly in the Mobile Industries segment, and unfavorable currency, partially offset by the favorable impact of acquisitions and pricing. The top-line figure, however, beat the Zacks Consensus Estimate of $884 million.
Costs and Margins
Cost of sales was down 2% to $640 million from the prior-year quarter. Gross profit inched up 1% year over year to $256 million. Gross margin came in at 28.6% compared with 28.0% in the year-ago quarter.
Selling, general and administrative expenses flared up 7% to $159 million from $148 million in the prior-year quarter. Operating profit decreased 9% year over year to $97 million. Operating margin came in at 10.8% compared with 11.7% in the comparable period last year. Adjusted EBITDA declined 10.5% year over year to $145.8 million.
Timken Company (The) Price, Consensus and EPS Surprise
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