TKR Earnings Prediction
The chart below shows how TKR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TKR sees a +0.45% change in stock price 10 days leading up to the earnings, and a +0.07% change 10 days following the report. On the earnings day itself, the stock moves by -2.49%. This data can give you a slight idea of what to expect for the next quarter's release.
TKR Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.13B
-1.39%
-4.69%
Gross Margin
28.82%
-2.60%
-3.90%
Operating Margin
12.56%
-13.08%
-15.65%
Net Margin
7.77%
-2.26%
-9.97%
EPS
1.16
-5.69%
-14.71%
No Data Available
TKR Earnings Analysis
The Timken Company Corporation (TKR.N) Earnings Conference Call
Positive
Acquisition-Driven Revenue Growth: 1. Strong Revenue from Acquisitions: Recent acquisitions, including CGI, contributed 1.8% growth to revenue, demonstrating the positive impact of strategic M&A on overall performance.
Cash Flow Performance: 2. Positive Cash Flow Generation: The company generated operating cash flow of $123 million in Q3, leading to a free cash flow of $88 million after capital expenditures, indicating strong cash management.
India Revenue Growth: 3. Solid Performance in India: India experienced double-digit growth in revenue, particularly in the rail and distribution sectors, showcasing the strength of this market for Timken.
Consistent Order Backlog: 4. Stable Order Backlog: The order backlog remained stable compared to the previous quarter, indicating consistent demand and operational stability despite market challenges.
Shareholder Value Commitment: 5. Continued Shareholder Returns: Timken paid its 409th consecutive quarterly dividend, reflecting a commitment to returning value to shareholders even in challenging market conditions.
Negative
Revenue Decline Analysis: 1. Declining Revenue: Revenue for Q3 2024 was $1.13 billion, down 1.4% from last year, with organic sales decreasing by 2.9%.
Earnings Per Share Decline: 2. Decreased Earnings Per Share: Adjusted earnings per share fell to $1.23, a 21% decline from the previous year, primarily due to margin shortfalls.
Declining EBITDA Margin: 3. Lower Adjusted EBITDA Margin: The adjusted EBITDA margin decreased to 16.9%, down 200 basis points from the previous year, attributed to higher logistics costs and lower sales volume.
Key Market Sales Decline: 4. Weak Performance in Key Markets: Sales in Europe dropped 13% due to broad industrial weakness, while China experienced a decline driven mainly by lower wind energy demand.
2024 Revenue Decline Outlook: 5. Revised 2024 Outlook: The company now expects full-year revenue to decline around 4%, with organic sales anticipated to be down approximately 6%, reflecting a more cautious view for the fourth quarter.
TKR FAQs
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TKR Earning Call Sentiment
The Timken Company (TKR) Q3 2024 Earnings Call Transcript
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00:00
00:00
TKR.N
-1.29%Positive
The earnings call reflects several negative factors: revenue decline, margin compression, and reduced free cash flow outlook. The Q&A section highlights concerns about renewable energy sector performance, unclear management responses, and lack of optimism for 2025. Despite cost reduction efforts, the weak guidance and economic outlook, along with geographic weaknesses, suggest a negative sentiment. The stable leverage and ongoing dividend payments offer some stability, but overall, the negative elements outweigh the positives, leading to a prediction of a negative stock price movement.
