Timken (TKR) Surpasses Q1 Earnings Predictions, Optimistically Adjusts 2024 Financial Outlook

• The Timken Company reports Q1 2024 earnings, with adjusted EPS of $1.77, surpassing the Zacks Consensus Estimate of $1.50.
• Despite beating estimates, the company’s bottom line declined 15% YoY due to low volumes.
• Total revenues were $1.19 billion, down 5.7% from Q1 2023, attributed to low demand and unfavorable foreign currency translation.

Timken Company reports Q1 2024 earnings, beating estimates but witnessing a YoY decline. The company’s revenues also saw a dip due to low demand and unfavorable foreign currency translation.

Timken’s Q1 2024 Earnings Overview

The Timken Company reported an adjusted EPS of $1.77 in Q1 2024, beating the Zacks Consensus Estimate of $1.50. However, the bottom line declined 15% YoY from the record EPS of $2.09 in Q1 2023, as low volumes offset the impacts of favorable price realization. Total revenues were $1.19 billion, down 5.7% from the record revenues of $1.26 billion in Q1 2023. The decline was attributed to low demand, particularly in renewable energy in China, and unfavorable foreign currency translation, partially offset by the benefit of acquisitions and favorable pricing.

Costs, Margins, and Segment Performances

The cost of sales declined 6.3% to $792.7 million from the prior-year quarter. Gross profit was down 5.6% YoY to $397.6 million. The gross margin was 33.4% compared with 30% in Q1 2023. Selling, general and administrative expenses rose 2% YoY to $190.7 million. Adjusted EBITDA decreased 7.2% YoY to $246 million. The adjusted EBITDA margin in the quarter was 20.7% compared with 21% in the prior-year quarter.

Segment Performances

The Engineered Bearings segment’s revenues declined 10.9% YoY to $802.5 million. The decrease was mainly due to weak demand and unfavorable foreign currency translation, offset by higher pricing. The Industrial Motion segment’s revenues rose 7% YoY to $389 million. The upside was led by higher pricing and the benefits of acquisitions,... Read the full article for FREE at COINOTAG!